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HMRC internal manual

Debt Management and Banking Manual

Pre-enforcement: Linking direct and indirect taxes: DMO actions

DMO checking for direct tax debts when enforcing an indirect tax debt

In the DMO at the RP check stage and before taking the enforcement action for any unlinked indirect tax debt, you should

  • check BROCS, SA or COTAX (as appropriate) for unpaid debts,
  • link and where possible, take a combined action for all debts.

The DMO must contact the DMU prior to recovery action to check the indirect tax debt has not changed. They must check;

  • for any correspondence that may have come in from the debtor
  • for any payments that may have affected the debt
  • details of the outstanding return details
  • for additional debts
  • for anything else that could affect recovery action going ahead.
  • Once all outstanding debts are linked recovery action can commence.

Early Recording Project

When a return is received (with or without payment) but not fully processed, VISION will be flagged overnight. The Early Recording Project (ERP) message will appear on the VISON LR (Ledger) screen.

You must check for this when calling the DMU to do an RP check, likewise the DMU should provide this information when an RP check is done.

If VISION is showing the ERP message the case should be held on a short B/F until the payment or return appears on screen, this will usually be a matter of days but could be up to 14 days in peak work or leave periods.

Good practice

It is good practice to ask the debtor about other HMRC debts during any telephone calls so that the full picture can be obtained as early as possible.