COM10070 - Appeals: handling appeals and postponements: informal standover in responsible CT office

Informal standovers can be requested by a company or its agent, but they may also arise from an internal request. (For example, Debt Management may request the temporary standover of a debt while they process a reallocation from a PAYE overpayment.)

An informal standover must always be considered carefully by a Decision Maker (Word 28KB) who is usually the same person as would consider a formal postponement application. The Decision Maker is responsible for ensuring that any informal standover is justified on the facts of each case.

Reason for informal standover application

Informal standovers must be supported by a valid reason. The following list gives some possible examples:

• Amendments, or other information received during the course of an enquiry to clearly suggest a decrease in the charge
• Loss carry back claims
• Group relief claims
• Reallocation of CT money held elsewhere, for example another accounting period or another group company
• Reallocation from outside of CT, for example PAYE or CIS
• There is an appealable charge for which you know a formal appeal and postponement application will be received within the 30 day appeal period and you intend to fully accept both

There will be circumstances when we should not make an informal standover. This will depend on the facts of each case but examples include:

• Avoiding payment of tax pending relief not yet due under S458 CTA 2010 (formerly S419(4) ICTA 1988) for tax suffered under S455 CTA 2010 (formerly S419 ICTA 1988)
• Where a Revenue Determination has been issued in the absence of a Company Tax Return
• Company has insufficient funds to pay HMRC. (Such cases should be considered by DMB under the ‘time to pay’ arrangements - see the Debt Management and Banking Manual at DMBM800000 onwards)

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Accepting an informal standover application

Where

• The Decision Maker agrees that an application for informal standover is supported by a valid reason and that it is not appropriate to pursue collection of an outstanding liability for an AP

• A formal postponement cannot be made

You must

• Informally standover the tax or penalty charge using Function HAPP (Handle Appeal)

• Identify the case owner who must actively manage the postponement, see COM10120 for further guidance on this subject.

Function VAPP (View Appeal) shows formal postponements but not informal standovers. To see the amount of an informal standover use Function VPPD (View Payment and Postings Details) where it will appear as posting type 'ISO'. Informal standovers appear on Work list LASO (Open Appeals and Informal Standovers List). For more information about this work list see

• Section ‘Appeals Work Lists’ (COM11000) in this business area

• Business area ‘Work Lists’

This will ensure that APs with outstanding liabilities are not automatically referred to Debt Management for unnecessary pursuit through Local Action.

If you use any of the following functions to amend an assessment, an amendment or a penalty determination, any informal standover present on the respective charge will be automatically cancelled

• Function RAMA (Record / Amend Assessment) to amend an assessment for a CTSA AP
• Function PAST (Prepare Full Assessment) to amend an assessment for a CT Pay and File AP
• Function PPEN (Prepare Penalty Determination) to amend a penalty determination

For a list of functions to use in particular situations, see COM10071.