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HMRC internal manual

Debt Management and Banking Manual

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HM Revenue & Customs
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VAT into IDMS: impact on other offices

Specific teams within Debt Management and Banking currently use DTR to record notes on a case even when there is no debt outstanding. This facility will not be available in IDMS as notes can only be recorded where there is an open work item (in other words, a debt). At this time DTR Notes will continue to be available to view historical information.

Banking

Accounting and Adjustments do not update notes on DTR when they have completed any action, for example processing a VAT 915. They record their action in EF by the capture of any documents and memo‘s with additional notes by caseworkers attached to them if required.

If they have a query on a VAT 915 or memo completed by Debt Management they would contact the caseworker who gave the instruction. If they need to contact Debt Management in other circumstances they will be able to contact the Single Point Of Contact (SPOC).

Payment on Account (POA)

Cases will continue to be worked on LAPIS pre any debt appearing on IDMS.

The VAT Mainframe will automatically update IDMS with new debts, adjustments and payments.

IDMS is used to record notes on the Taxpayer action history when there is an open work item. Notes cannot be made on IDMS prior to a work item downloading or after it is closed.

If notes need to be recorded then, the POA team within Banking will continue to use the DTR scratchpad.

National Insolvency Unit (NIU)

Prior to the input of a VAT 769 (Pre VAT 769 action) where a debt has been downloaded to IDMS the NIU will be able to use IDMS to record notes on the Taxpayer action history against an open work item.

VAT 769’s will continue to be input via DTR Insolvency suite.

Overnight processing will automatically close any IDMS pre relevant work items.

Once a work item is closed further notes cannot be recorded to action history on IDMS. If further notes need to be retained then the NIU will use the DTR scratchpad.

Any post relevant debts will be downloaded onto IDMS and notes will be able to be made on IDMS in action history until the work item is closed. Notes on the DTR scratchpad will not cut across.

Where a case is insolvent and the Insolvency Practitioner’s or Official Receiver’s address is showing on the VAT Mainframe and held within the Insolvency screens on DTR, this address will not be reflected on IDMS.

Large Business Unit (LBU) and Specialist Offices, Cumbernauld

The section “VAT signals and conditions” sets out the specific rules to direct cases to the Large Business Unit (LBU) and the Specialist Offices, Cumbernauld.

Generally debts where the LVO Source office code is set to 109 on VISION will be directed to the LBU OU on IDMS.

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

Debts that are over £100K will be segmented under the VAT campaign on IDMS.

If exceptionally, there is a debt over £999,999,999.99 it will be directed to the NDPU OU on IDMS.

RLS Tracing

Where a work item has already been advised to IDMS prior to the 309 review code being set on the VAT Mainframe, the RLS Signal will set on IDMS but the case will remain in its present OU.

The Taxpayer and work item record will need to be manually transferred to the RLS Tracing OU 397009 on IDMS.

Mutual Assistance in the Recovery of Debt (MARD)

UK VAT debts and Excise, Environmental & Customs (EEC) debt work items that require MARD intervention will need to be transferred to OU 335203 on IDMS.

Follow the appropriate referral guidance as contained in DMBM560180.

Taxpayers formally managed by the Non Established Taxable Persons Unit (NETPU)

Where addresses on the VAT mainframe have “HM” in the first line of the address and the following postcodes AB10 1ZP or BD1 4XX the abroad signal will automatically be set on IDMS when a new work item is advised.

However those cases with Jersey (JE) and Guernsey (GY) postcodes will not automatically have the abroad signal set.

If you come across any of these cases you should transfer the Taxpayer and Work Item record to OU 335200 on IDMS.

New work items that are advised to IDMS where the Abroad signal is set or there is a postcode starting with ’JE’, ‘GY’ or ’IM’ will automatically move to the NRU.

Deregistered Customers now living overseas

Where a taxpayer has provided an abroad address when deregistering, the address on the VAT Mainframe will show as HMRC Wolverhampton. If you come across any of these cases you should check the VAT 7 in EF for the overseas address and update this to the Recovery Address in IDMS. Transfer the Taxpayer and work item record to OU 335200 on IDMS.

Voluntary Arrangements (VAS)

Prior to the input of a VAT 769 (pre Vat 769 action) where a debt has been downloaded to IDMS the VAS team will be able to use IDMS to record notes on the Tax Payers action history against an open work item.

VAT 769s will continue to be input via DTR Insolvency Suite

Work items should not be adjusted on IDMS as this will automatically be updated via overnight processing from VISION.

Overnight processing will automatically close any IDMS pre relevant work items.

Once a work item is closed further notes cannot be recorded to action history on IDMS. If further notes need to be retained then the VAS Team will use the DTR scratchpad.

Any post relevant debts will be downloaded onto IDMS and notes will be able to be made on IDMS in action history until the work item is closed. Notes on the DTR scratch pad will not cut across.

A review code 569 will be set on the VAT Mainframe for any post relevant debt that should be directed through to the VAT Campaign. The review code 569 will be set and removed by the VAS team only.

Excise, Environmental, and Customs Team (EEC)

EEC Debts are set up and worked in IDMS Organisational Unit (OU) 368200.

EEC team have been working their debts on IDMS since July 2010. New debts referred for recovery will be set up on IDMS using a unique ‘EEC’ reference number. Older cases will have the DTR pseudo number: however all cases can be identified by the source office code 279 and the work item type of ‘Directors Penalties’.

Welsh Language

Where the Welsh Language signal is set for a Taxpayer the open work item will be allocated to the relevant national VAT hopper unless one of the other rules apply. However automatic IDMS 99 letters are inhibited and the debt will be excluded from any Campaign segmentation. If you come across a case where the Welsh Language Signal is set transfer the Taxpayer and Work Item record to OU 315400 on IDMS. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)  

Visually Impaired Unit

There is no signal set on the VAT Mainframe to identify Visually impaired taxpayers. Consequently there will be no signal on IDMS for VAT work items. Signals can be set on some other HOD systems so a note may be on IDMS to this affect.

If you see a note that the taxpayer receives communications for other HODs (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Deceased and Trusts

A centralised Estates and Trusts office in Nottingham deals with cases when a Sole proprietor is deceased and if all partners in a partnership are deceased. The office also deals with Trust cases (Trust or Trustees in the registered name or Pension fund/Scheme etc).

If information is received advising that the customer is deceased you should advise Grimsby Vat Registration Unit (VRU) by EF VRU 228. Grimsby will change the registered details on the VAT mainframe via DTR to read “THE PERSONAL REPRESENTATIVE OF THE LATE ……” and will send any relevant papers for information to that representative for completion.

You should select next action deceased and set the Deceased signal in Designatory details.

If enforcement action has not already started transfer it to the Deceased Estates and Trusts Office OU 303600.

If enforcement proceedings have already started see DMBM585260.

For cases where Grimsby VRU are informed of a deceased taxpayer in the first instance you may only be made aware if they contact the VAT SPOC to inform DMB and request the signal is set on IDMS.

Additionally you may come across a case for next action and see the name has been amended already by Grimsby to a deceased representative and the signal is not yet set. Take action as above, set the signal and transfer to the Deceased Estates and Trusts unit OU.

Security (SI)

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Local Compliance

When you make notes on IDMS LC officers will not be able to view them to see what action you are taking as they were able to do so when using DTR. They will not be able to see which DMB office is dealing with a particular debt unless there is an UI on EF specifically for set off cases. If they need to contact DMB for other reasons when a UI would not be on EF they will go through the VAT SPOC (This content has been withheld because of exemptions in the Freedom of Information Act 2000) .

Other VAT Business areas

Other VAT business areas such as the VAT Registration Unit, including Variations, and Deregistration processing will not have access to IDMS. When you make notes on IDMS remember that they will not be able to view them to see what action you are taking as they were previously able to do on DTR. Their processes remain unchanged in that they continue to make changes to the VAT Mainframe via DTR and they work out of EF. Any notes they make will be attached to documents captured on EF. If you want to bring a note to their attention you would have to make that on EF by either capturing it as a memo and forwarding it to the relevant tray or using the note facility on EF.

If they need to contact DMB they will go through the VAT SPOC (This content has been withheld because of exemptions in the Freedom of Information Act 2000) .

Campaigns

DMB has moved to a campaign based approach to managing debt. Future campaigns will be designed to exploit the capabilities of IDMS which allows us to:

  • segment new and existing debt
  • target work using a variety of campaign letters
  • refer cases for outbound contact.

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