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HMRC internal manual

Labour Provider Guidance

Interventions: missing returns: background

The VAT missing return lists create Tier 1 and Tier 2 Labour Market (LM) work within Fraud Investigation Service(FIS). The lists are created by Risk and Intelligence Service (RIS) and sent to the FIS teams monthly.

Responsibility for missing return cases sits with Debt Management (DM) and you need to check for other interest via IDMS before beginning any intervention.

Tier 1 work

This involves carrying out DM activity to collect in the overdue return and payment. If a return is filed as a result of our activity, any additional tax declared above the central assessment can be claimed as yield. Payments obtained can be claimed as cash collected. LPOG10200 provides for guidance on yield and how to avoid double counting.

DM activity is restricted to LM cases under the memorandum of understanding between FIS and DM.

The centralised team in Sheffield carry out initial work on the lists. They will refer cases to operational teams where appropriate. Operational teams should refer to LPOG3450.

Tier 2 work arising from missing return cases

Referrals from the central team have the potential to become tier two intervention cases. Teams may also identify cases from their own examination of RIS lists. This is often referred to as self-sourcing.

If returns are not being submitted but central assessments are paid, it is likely that the true liability is much higher. This type of intervention will fall into the Schedule 24 penalty regime. LPOG3490 gives hints on identifying tier two cases.

LPOG3450 provides guidance on working missing return cases referred from the centralised team depending on the status of the case when it is received by the Operational teams.