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HMRC internal manual

Debt Management and Banking Manual

Time To Pay: Time To Pay requests: debts of £750,000 and over

Debts of £750,000 and over

Where a customer has a debt of £750,000 or over you must complete the details of the request on a Corporate Debt Questionnaire.

If at any point during discussions/negotiations you believe that the customer has the ability to pay in full or that their request is unacceptable, you should look to reject the request at that stage. You should summarise the details of the request on a Case Summary Form (Word 70KB) and pass to an HO/SO for them to approve the rejection, see DMBM803520.

TTP arrangements exceeding 12 months are exceptional and must be authorised by a manager, with the exception of tax credit cases.

DMTC only

DMTC collectors currently do not complete Corporate Debt Questionnaires. Where TTP proposals exceed 3 months they will:

  • obtain the largest possible payment immediately
  • note details of the request on the IDMS action history notes
  • wrap the case or set a next action BF code for the campaign DTO to review the case
  • advise the caller that we will contact them to discuss their request, and that they should continue to make payments.

In-year PAYE

If the debt involves an element of in-year PAYE you must arrange for an urgent PAYE quantification to take place prior to sending the case to the Compliance Accountants or the appropriate grade 6 or 7.

To arrange for this you must email the Field Force Mailbox ensuring the you enter ‘ Urgent Quant Required - Large Value Case’ as the subject of the e-mail.

FF upon receipt will give this request priority and complete the Quantification within 5 days.

Debt is £1,000,000 or over

Where the debt is £1,000,000 or over we may require the business to pay for and produce an Independent Business Review (IBR) to enable us to review impartially produced information before making a decision on the TTP request. Ultimately, it is up to DMB SCS to decide that an IBR is required. Where the debt is £1,000,000 or over follow the guidance at DMBM802240.

Debt is below £1,000,000 or the debt is £1,000,000 and over and we don’t require an IBR

If after obtaining the information on the Corporate Debt questionnaire you believe that the proposal may be acceptable you must also obtain the documentary evidence A-E in line with DMBM802300.

When asking the customer to supply this information you should agree a deadline that they have to submit the information to you. When setting the deadline you should consider the circumstances of the business. You must bear in mind that the business should have most of this information readily available as they will have required this information if/when they approached their bank or other financial information to ask for their support and also when they formulated their TTP proposals. Most businesses should be able to submit this information within 24-48 hours.

Once you have this evidence you will need to review the proposals and complete the Case Summary Form (Word 69KB).

At this stage you should have sufficient evidence to review the case and come to an informed decision as to whether to reject the proposals or not. If you think that the proposal might be acceptable the case should be passed to a HO/SO to review. If you think that the proposal should be rejected follow the guidance at DMBM803520.

Where you don’t have sufficient information you should go back to the customer to get the information that you require. Where the customer won’t provide the information or is slow in doing so you should take action to recover the debt.

Compliance Accountant’s review

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

When the case has been sent for a Compliance Accountant’s review you should inform the customer that the case is being reviewed by one of our Compliance Accountants (CA) and we will let them know of the decision as soon as possible. The customer should also be advised to make the largest payment possible whilst the request is being considered. Before referring the case to an accountant you must complete an accountant pre-referral form. This form must be emailed to Richardson, Anthony (FIS PoC Compliance Accountants) and copied to Sheamie Donnelly (DMB). In the subject line of this email you must include the name of the customer and the lead reference number.

If the debt is/was £1,000,000 or over and a CA has advised that an IBR isn’t required, as it will not add value, you don’t need to send a pre-referral form and instead should just email the CA that advised you we didn’t require an IBR with the information detailed below.

After sending the e-mail you should get a response within 24 hours advising you which CA will be conducting the review.

Once you have been informed of this you must email the CA:

  • the Corporate Debt Questionnaire
  • the Case Summary Form (Word 70KB)
  • any additional evidence that is held electronically.

If additional evidence is held in hard copy you must post or fax this to the CA. When sending this information you must make sure that you comply with departmental security guidance.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Compliance Accountant’s actions

On receipt of the information, the CA will review the case.

The CA may need more information about the particular case. It is the responsibility of the case owner to contact the customer for this information and to ensure it is received in a reasonable time. The CA may not be able to continue with the case review until the information is supplied. If the information is not supplied within a reasonable timescale then the request for TTP may be rejected.

When the CA has finished their review they will give you an opinion, raise further questions and make comment on solvency and affordability. (This content has been withheld because of exemptions in the Freedom of Information Act 2000) This review will include a recommendation on the request for TTP.

This recommendation is the CA’s opinion on the request. All decisions to accept TTP must be made at the appropriate authority grade as per DMBM803510. In some cases the authorising officer may not agree with the OA’s recommendation.

Seeking authorisation

If after reviewing the CA’s report you believe that the TTP proposal should be accepted then final authorisation needs to be given at the correct grade as detailed in DMBM803510.

If you think that the case should be rejected you should follow the guidance at DMBM803520.