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HMRC internal manual

PAYE Manual

HM Revenue & Customs
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Employer returns: employer return post capture: underpayments

If an employer or contractor has not paid the full amount of PAYE tax, Class 1 NIC or contractors deductions for the year (This content has been withheld because of exemptions in the Freedom of Information Act 2000) ), you will receive

  • From a Debt Management Office

    • Form IDMS11 (which replaces form C87) where recovery proceedings have started to be pursued locally


  • From Enforcement Offices

    • Form 84/EO (which replaces form C154) when the underpayment has been passed to Enforcement Office for them to pursue for collection

Contact from Debt Management Offices

Procedures regarding the pursuit of underpayments changed in 2001. A more streamlined process was introduced, primarily for the Integrated Debt Management System (IDMS). As a result, the C87 series forms received in the past were abolished being replaced by forms IDMS11 and IDMS12. The actions you need to take on receipt of either of these forms are covered in ‘Underpayments (Action Guide)’ at PAYE46111.

One of the main changes regarding the pursuit of any underpayment by a Debt Management Office is that you will now not normally be aware that recovery action has started until you receive a form IDMS11 advising you that action has already commenced. Occasionally however, Debt Management Offices may contact you by telephone to establish the validity of a debt prior to enforcement action commencing. If this does occur, you should satisfy yourself that any caller is genuine before providing any assistance.

Contacting Debt Management or Enforcement Office

It is essential that should you receive any information, which might affect the pursuit of an underpayment by either the Debt Management Office or Enforcement Office, you contact the relevant office by telephone immediately.

Settled cases

When the action taken against an underpayment has been concluded, Debt Management Offices will send you automatically a form IDMS12.

Any cases that had been referred to Enforcement Office, once settled will be notified to you either

  • By a memo


  • Form 85/EO