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HMRC internal manual

Labour Provider Guidance

From
HM Revenue & Customs
Updated
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Yield and Measures: cash collected

Key principles of cash collected

Items arising as a result of correcting things that have already happened and ensuring revenues due are paid or there is a reasonable expectation of payment. This includes:

  • Debts collected as a result of LM debt recovery action (including payments made as a condition of a Time to Pay arrangement).
  • Assessments
  • Settlements
  • Determinations
  • Interest
  • Penalties

More guidance is available COG17105 and COG18105 

Calculating cash collected

Net additional liability on VAT assessments - the difference between the tax due as a result of an intervention, e.g. missing return action, and the tax charged on centrally issued assessments when it appears on the VAT ledger as a debt.

Tax charged on direct tax assessments, determinations etc. when an enforceable debt has been established and any appeal, challenge etc. is unlikely - effectively when dialogue is at an end.

Assessments / Settlements: All tax, interest and penalties raised excluding any amount already in charge by way of returns / central assessments etc.

Any tax collected using devolved DMB powers which has not already been claimed. Cash collected may also be applicable if revenue is collected through POCA

Beware of double counting! 

Cash Collected cannot be claimed for payments received against Assessments already recorded as Cash Collected where no additional intervention has been undertaken, i.e. DMB activity.

Example 1 - Assessment issued for £10,000 which has been claimed as Cash Collected.  The £10,000 has not been paid therefore if a DMB Intervention has taken place which has resulted in the £10,000 being paid, this £10,000 can then be claimed as further Cash Collected. 

Example 2 - Assessment issued for £10,000 which has been claimed as Cash Collected.  £5,000 has been paid without any further intervention - no claim for Cash Collected can be made.  £5,000 has not been paid therefore if a DMB Intervention has taken place which has resulted in the £5,000 being paid, this £5,000 can then be claimed as further Cash Collected.

 

Case owners and team leaders should ensure where intervention activities overlap there is a clear audit trail to show there is no double counting. Cash collected cannot be claimed for a period where we have already claimed FRB/RLP in a case.

Examples of range of yield claims for LM Interventions (LPOG10500)

Recording Cash Collected Yield

Results are recorded on Caseflow - guidance can be found under the Compliance Operational Guidance (COG) under Caseflow 2