HMRC internal manual

Enquiry Manual

EM3955 - Concluding the Enquiry: Non-Contract Settlements: Notifying Debt Management and Banking (DMB)

You should check the other guidance available on GOV.UK from HMRC as Brexit updates to those pages are being prioritised before manuals.

Some enquiries will have been settled by assessment (and pre SA interest determinations) and amendment in the years under enquiry because of the taxpayer’s lack of co-operation. Failure to co-operate in agreeing the liability is likely to be followed by an unwillingness to pay the tax.

Form MS134 has been designed to warn DMB of such cases so that they are aware of the potential difficulty coupled with the need to take action because of the compliance failures. It also gives you the opportunity to provide any information which may assist in recovery of the debt.

Send the form, which is available in SEES, where you are settling your enquiry by assessment because the taxpayer

  • has failed to co-operate, or
  • seems likely to refuse to pay the tax due.

You need not send the form if

  • your enquiry is being settled either by contract settlement or formally, and
  • you do not expect that they are unlikely to pay.

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

Note the issue of the form (or keep a copy) in the enquiry folder.

Prompt action by the DMB may encourage the taxpayer to co-operate. If you accept a late appeal that results in a reduced assessment or a postponement, notify the DMB immediately (as well as updating the SAFE charge, if necessary).