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HMRC internal manual

Debt Management and Banking Manual

VAT into IDMS: working in IDMS

New VAT debts sent to IDMS are called VAT Local Action Notices (LANS).

New LANS and Update LANS will be transferred to IDMS either

  • on the same date as the existing VAT Mainframe ADA run and following the existing maturity rules, which is

    • Main ADA (First Friday on or subsequent to the 11th of the month)
    • Repayment ADA
    • mini ADA at the end of the month
  • or on a daily basis for

    • VAT on a Return when it replaces the Prime/Automatic Assessments
    • unpaid cheques
    • failed electronic payments.

Once the work items are created in IDMS they will be updated on a daily basis. This means any amendments to the VAT record for example payments, adjustments, setting of specific review codes or an amendment to the Taxpayers address will be updated on IDMS.

Where there is only a change to Designatory details, these will be updated in IDMS within 48 hours.

VISION will continue to show the Enforcement Status Indicator set to 1 on the Outstanding Liability (OL) table when a VAT liability has been sent to IDMS. The Enforcement Status Indicator is in the format ‘1/0’ and it’s the first number in the string which determines if the debt has been downloaded to IDMS. This can be viewed in the right hand column of the OL table under the heading ‘Status/Drop Ind’.

The following work items will be sent to IDMS

  • VAT Officers Assessments including Voluntary Disclosures
  • VAT Penalty
  • VAT Surcharges
  • VAT (on Return)
  • VAT Prime/Auto Assessments
  • VAT Officers Assessment Interest (Interest will be set up under the Officers Assessment Work Item).

Officers Assessments will show as separate work items for each tax period and a separate Work Item for the initial Interest.

Recognising VAT cases

You will be able to recognise VAT cases in IDMS by the VAT Reference Number (VRN).

As an example: 123B123456789 101200 01 is made up as follows:

  • the 3 digit District number will be taken from the Local VAT Office (LVO) numeral (123)
  • the Head of Duty type will always be ‘B’
  • the 9 digit VAT Registration Number from VAT will be shown as the Registration Number (Reg. No) on IDMS (123456789)
  • the Account and Sub Number will be 6 characters long made up of YYMMNN
  • YY - the year of the debts Ledger Entry on VISION (year 10)
  • MM - the month of the debts Ledger Entry on VISION (month 12)
  • NN - A 4 digit consecutive number of which the first two digits will be displayed here (0001 consecutive no)
  • Instalment number will be 2 characters the last two digits of the consecutive number
  • an ‘X’ following the reference number denotes an Officers Assessment Interest charge.

How to trace a taxpayer

Trace taxpayer function can be accessed from either Work List or Main Menu. This function allows you to trace taxpayer records that are held on IDMS.

Step by Step guidance is available IDMSUG500805.

Taxpayer Types

Taxpayer types are shown on the Taxpayer Designatory Data and can be either

  • Individual
  • Partnership
  • Company (an incorporated company)
  • Other (an unincorporated company such as Limited Liability Partnership LLP or Non Profit Making Body NPMB)
  • Trust.

Where the Taxpayer Type is Other or is blank, you will be able to update the details to LLP or NPMB only. This change will not be and need not be reflected on the VAT Mainframe.

Taxpayer Information Summary

The TIS screen provides you with a view of key information about a taxpayer, and any work items associated with a taxpayer, to deal with a customer enquiry or to make an informed decision about how to progress a case. You can access this function by double clicking on a work item or highlighting a work item from a work list then using menu or toolbar options (IDMSUG400105).

Once in TIS if your user role permits you can

  • view Action History
  • access Designatory Details
  • record important information about the taxpayer on the Notes/Assets tab from Designatory details.

You are also able to carry out a number of functions such as transfer taxpayer and/ or work items , create, view or amend instalment arrangements and issue letters

To see all the options available to use see IDMSUG400110.

Updates to Designatory Details for the name, address and postcodes should only be made by the Registration Unit via DTR as per current guidelines. Updates to Insolvency data and Review codes, such as RLS signal, Security and the Deregistration status must continue to be made on the VAT mainframe or DTR.

It is important that changes required to a telephone number either through a telephone trace or manual notification are manually updated to DTR. The telephone number details held on the Registration screen in DTR updates the IDMS information.

Once the changes have been made they will then be updated to IDMS even if the debt is not changing within 48 hours.

Insolvency Suite on DTR will continue to be used to process VAT 769s.