COM110020 - Pursuit: automatic and clerical pursuit: automatic pursuit

Where the Pursuit Status (Word 40KB) shown in Function VPPD (View Payment and Posting Details) is ‘AUTO’, COTAX can automatically issue

Payment reminders 28 days before the normal due date (Word 49KB) and 42 days before the filing date.
A payment application, (This text has been withheld because of exemptions in the Freedom of Information Act 2000)for unpaid liability after

- The normal due date for a non Quarterly Instalment Payment (Word 42KB) case

- The final payment due date for an Instalment Payment case

Notes:

1.	A DN1 (first application) for an AP will usually be issued as part of the Notice of Assessment, Revenue Determination (Word 29KB) or Penalty Determination
2.	Except for 1 above, payment applications will not be automatically issued if the outstanding amount (Word 27KB) is £100,000 or more
3.	Information about automatic pursuit for Quarterly Instalment Payment cases is in the section 'Quarterly Instalment Payment cases' in the Payments business area

You can view details of

The last pursuit action taken using Function VPPD (View Payment and Posting Details)
All pursuit actions, including the issue of payment reminders, payment applications and when a charge was made LA using Function DPUR (Display Pursuit Action). Function DPUR will display the date of when the action occurred and where a payment application was issued the amount requested for payment. The pursuit actions are shown on screen as an Action History Type (Word 52KB)
The payment due date in Function DINT (Display Interest Computation)

All payment applications for tax show

Credit interest (Word 34KB), where given, under the heading ‘Less Payments already made including any credit interest’
Debit interest (Word 31KB), where charged and late payment interest (Word 27KB) accrued to the date of issue of the payment application under the heading ‘Interest accrued including any debit interest’

For more information about the amount of interest shown on payment applications see section 'Interest Demands And Statements' (COM83000) of the ‘Interest’ business area.

All payment applications include a payslip portion that the company can use to make a payment at a bank or post office. It is also used by Banking Operations where the company pay by cheque direct to HMRC.

Note: It is mandatory for all companies to pay their Corporation Tax and related liabilities electronically. Related liabilities include interest charges on overdue CT and penalties for not filing CT returns on time.

The remainder of this subject is presented as follows

Payment reminders
Synchronisation of payment applications
Address on reminders and payment applications
Stopping automatic payment application issue
Prolonged pursuit

Payment reminders

Up to two payment reminders can be issued. A PR1 reminder can be issued 28 days before the normal due date and a PR2 reminder 42 days before the filing date.

A reminder after the due date is not issued if a return is logged. In addition, irrespective of whether a return has been logged, a reminder is not issued for an AP if any of the following circumstances apply

The company has ceased
The company is insolvent
A nil return has been received
An assessment Word 29KB) is not required
An assessment has been raised
A suspension is recorded on the AP
The Inhibit Penalty Indicator (Word 28KB) is set
The AP status (Word 44KB) is 'dormant', 'superseded' or 'exempt'
The AP shows a net payment

Note: A payment reminder will be issued if an amount has been reallocated to the AP

The AP is referred for clerical pursuit (Word 28KB)
All the addresses on the record are RLS

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Synchronisation of payment applications

For CTSA AP’s a fresh series of payment applications is not started where the AP is working LA (Word 28KB) with the Debt Management Office and the charge is either increased or decreased and leaves a collectible amount.

The amended charge details are notified and updated on IDMS.

For CT Pay & File AP’s where the charge is altered by

An amended or further assessment / penalty determination
A Revenue Amendment (Word 30KB)
A stand-over or stand-over release

A return which increases the amount charged

A fresh series of demands is started except where the LA-ENF (Word 27KB) or PLA (Word 28KB) signals are set to ‘Y’.

When a penalty is charged or amended it will be included on payment applications as follows

Situation on AP	Effect on existing payment application cycle
No tax collectible	New cycle of payment applications issued after the 30 day appeal period has expiredNote: A first application will be issued with the notice of penalty determination
Tax collectible	Penalty is included on the first payment application to be issued after the 30 day appeal period has expired. If a payment application is to be issued before this date the payment application will not include the penalty
AP subject to clerical pursuit at the Debt Management Office	No new payment applications issued. The penalty will be referred to the Debt Management Office immediately

Interest charged or amended will not start a new cycle of payment applications where tax or penalties are also being applied for.

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Address on reminders and payment applications

COTAX issues reminders and payment applications to the first available address in the following order

Communication address (Word 28KB)
Company address (Registered Office)

Where the address on a company record is an overseas address see subject ‘Foreign Address Cases - Clerical Pursuit’ (COM110130) in this section.

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Stopping automatic payment application issue

Automatic pursuit by payment application stops when any one of the following applies

The collectible amount is

- Cleared
- Stood-over
- Suspended

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

All the addresses on the record are RLS
The company is insolvent
The AP is referred for clerical pursuit
An automatic RFI condition (Word 33KB) is created
The PLA signal has been set to ‘Y’ using Function RTPP (Revise Taxpayer Pursuit)
The company is struck-off

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

Further information on making an informal stand over can be found in business area ‘Appeals’, section ‘Handling Appeals and Postponements’, subject ‘Informal Standover in responsible office’ (COM10070).

In addition the Debt Management Office and Banking Operations can use

Function RSUS (Record / Amend Suspension) to suspend collection of liability. This stops payment application issue for up to 60 days
Function RAPP (Revise AP Pursuit) to

- Inhibit the issue of payment reminders and payment applications
- Restart a payment application sequence
- Make the collectible amount subject to clerical pursuit

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Prolonged pursuit

A case will appear on the Banking Operations PURL (Prolonged Pursuit Cases List) work list if

A collectible amount has been outstanding for 6 months or more

And

A payment application has not been issued for over 3 months

For more information about this work list see

Section ‘Pursuit Work Lists’ (COM114000) in this business area

And

Business area ‘Work Lists’

For a list of forms relevant to this subject, see COM110021.

For a list of functions to use in particular situations, see COM110022.

For legislation applying to this subject, see COM110023.

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