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HMRC internal manual

Debt Management and Banking Manual

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HM Revenue & Customs
Updated
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Debt and return pursuit: contract settlements: SAFE/IDMS processes

Contract settlements will continue to be raised and accounted for on SAFE. The contract may be payable in one lump sum or by instalments.

SAFE will make two applications for payment for all the contract settlements. Additionally, where the settlement is payable by instalments agreed in the contract, SAFE will issue a payment reminder 14 days before each instalment due date.

If the charge remains unpaid after issue of the applications SAFE will pass the charge to IDMS, which will pass the work item to a DTO or EIS as follows:

For all contract settlements payable in one sum

  • SAFE will automatically pass the charge to IDMS for action by DTOs using IDMS rules.

For all contract settlements payable by instalments (agreed in the contract)

  • SAFE will continue to pass the charge to IDMS for action by EIS.

NTC contract settlements will go to the SAFE Local Action Work List.

DTO and EIS action must at a minimum on a weekly basis

  • identify both new and BF’d contract settlements using IDMS Function, Filter and Sort and
  • transfer the work items to the NDPU to pursue collection of the settlements.

For any debts not already referred from SAFE to IDMS, the SAFE Unit staff will continue to follow existing procedures, for example dealing with and agreeing time to pay arrangements.

Work item ownership

IDMS and SAFE processes refer contract settlement work items to DTOs and EIS. When the work items move to these offices they usually become owner of both the IDMS Taxpayer Record and the work item. We have asked them to transfer the work item for the contract settlement to the NDPU to deal with but to retain ownership of the IDMS Taxpayer Record and any associated work items.

In the majority of cases the NDPU will be the contract settlement work item owner only. This will allow you to continue to deal with other work items for the taxpayer.

Other types of work items linked/associated with settlements

The NDPU will be responsible for pursuing the contract settlement and any other work items that are not already subject to enforcement action and either:

  • associate to that work item or
  • link to that work item.

Moving the IDMS work item

From IDMS TIS:

  • highlight the work item(s)

Either

  • select Work Item
  • select Record Actions

or

  • click on the Toolbar button
  • select Clerical and then Other and enter in Further Information; CSS Debt
  • on the Move To box select from the Menu option C/W Miscellaneous.

The work item(s) will immediately move to C/W Miscellaneous with a next action of Review and today’s date.

After ensuring the work item is on the C/W MISCELLANEOUS worklist you should transfer work item ownership of the contract settlement to the NDPU (DMBM565030).

For cases where one or more director(s) is ‘jointly and severally’ liable for the debt, the NDPU will be responsible for updating IDMS work item to avoid ICHU remitting the debt when lodging the claim.