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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
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Pre-enforcement: preparing a case for enforcement: Quality Gateway checks for direct taxes: PAYE limited company

Areas to consider and check to verify that PAYE ltd company cases are suitable for enforcement

You should:

  • check BROCS action history and payment details for appropriate year
  • read the BROCS record on IDMS open/closed action history, notes and assets and designatory details. Look for relevant information, for example:

    • check for Phoenix or RLS signal (if the RLS signal is set follow DMBM605130 - Address Checks).
    • check that the company is still trading
    • check the outcome of previous distraint calls
  • check director’s details/telephone numbers.

It is vital that you check the Companies House website and note IDMS notes and assets, designatory details with new information.

Additionally you should:

  • check CIS system in appropriate cases to ascertain if the company is still active.
  • access EBS, if no relevant information has been established from IDMS (EBS holds the COTAX UTR and Director details):

    • from these you may be able to obtain telephone numbers or the director’s name and NINO
    • additional information may be gathered from SA so the NINO should be used to access the system
  • contact CRI using form CT46-CRI for the Director’s name and addresses, if the information is not available on EBS or has not already been found from other sources
  • use the tracing function (TRCT) on COTAX to establish the company’s CT reference number, UTR, if not already established from EBS.

You should also access the company’s COTAX account and view their details (VTPR) to see whether the business is:

  • in liquidation
  • struck off
  • notice if intent to strike off
  • ceased
  • dissolved.

Striking off for non filing

The registrar at Companies House will take action to strike a company off if it has not submitted accounts or other documents due. It does not necessarily follow that the company will be struck off.

The action initiated by Companies House to strike off a company is evidence of non compliance. The compliance caseworker may already have raised an objection with Companies House as the outstanding documents, if submitted, may reveal tax due.

Where there is a notice of intent to strike off and as a matter of urgency, ask the Compliance Office for CT to lodge an objection with Companies House, if they have not already done so.

View the payment and postings page (VPPD) to establish whether the company has any outstanding CT liabilities. If the debt is collectible check for any indirect tax debt and proceed with enforcement if appropriate, see DMBM605410.

For further information from COTAX you should:

  • use function DAPD to determine if the company is dormant
  • view CT case notes, Function Note
  • input the COTAX reference into IDMS and read the COTAX record on IDMS open/closed action history and designatory details.
  • if there is a live CT liability cross reference, link and work together.

Companies in liquidation

If you find that the company is in liquidation, you should:

  • set the insolvency signal on IDMS
  • enter the date of liquidation on to IDMS action history and designatory details
  • transfer to C/W INSOL and await INSOL 200.

Other companies

For all other companies who:

  • have ceased trading
  • have been struck off or dissolved or
  • are dormant

undertake clerical review and consideration of appropriate next action. This could be:

  • pursuit of P35/P14s
  • Reg 72(4), Reg 80 or 81
  • remission class 2/4.