INS11709 - Seven-day demand letter

Response to seven-day demand letter

Introduction

Payment in full

Payment proposal made

No response to the acceptance letter

click here to return to topIntroduction

The seven-day demand letter (7DDL) is intended to provoke a response from the company that leads to negotiation for payment of the debt.

The aim is to try to enable payment of the right debt at the right time, or as quickly as possible, and to bring the company up to date with payment and returns and into compliance for the future. When possible payment arrangements over more than three months should be paid by direct debit.

The Casework Manager will sample check cases on a quarterly basis so that EIS enhances the quality of Time to Pay (TTP) arrangements through more effective negotiation with debtors. EIS aims to achieve at least a 75% success rate with TTP arrangements.

But if the debtor cannot or will not pay, then EIS will take firm and fast action in fairness to taxpayers who do pay their debts and submit information on time.

click here to return to topPayment in full

  • Make sure the payment is received and allocated.
  • BF one month for the E1 Assistant Examiner to check
  • The allocation has been processed correctly
  • For any further arrears or interest outstanding. If so refer them to the Examiner.
  • All arrears are cleared. If so use the Settled case Wizard to settle the case.

At the one month BF

  • Check that the company is maintaining current payments and that any legacy debt has been cleared.
  • Refer the form IDMS300 and papers to the Recovery Office (Collector).
  • Advise the company by telephone or letter that the papers have been referred to the local office.
  • Complete the settled case wizard and transfer responsibility on IDMS and the head of duty systems back to the Recovery Office.
  • Refer the case papers to the E2 to update the 7DDL statistics.

click here to return to topPayment proposal made

  • Obtain the PAYE/NIC outstanding figures from the company (treat them as ‘quantified’ amounts).

Is the payment proposal acceptable?

Yes: payment in full within six months?

  • Check whether the payment proposal is suitable for direct debit.

No

  • Telephone or write to reject the offer (stating clearly the reasons why it is unacceptable). If appropriate ask for revised proposal.

Is the revised proposal acceptable?

Yes: payment in full within six months?

  • Check whether the payment proposal is suitable for direct debit.

Is payment over more than six months?

Yes

  • The Band D examiner is to authorise acceptance
  • Check whether the payment proposal is suitable for direct debit.

No

  • Prepare the case for validation and factsheet.

Is the payment proposal suitable for Direct Debit?

Yes, the case is to clear over more than three months

  • Complete the 165-2/EO (NEW) checklist.
  • Complete report form 2/EO showing the proposals you have accepted, confirm the direct debit amounts and months to be covered by the arrangement.
  • Note the statistics.
  • Take the papers by hand to the Instalment Monitoring Unit (IMU).

No, the case is to clear in less than three months

  • Issue form MU1 and MU2 acceptance letters to the company with a statement of liabilities, specifying
  • The dates when the payments are to be made
  • That current liabilities are to be paid on time.

click here to return to topNo response to the acceptance letter

If the company cannot or will not pay and fails to

  • Respond to the first contact 7DDL
  • Make acceptable payment proposals after its initial response
  • Respond to a cancellation letter when it has failed to
  • make payments as agreed under the payment agreement or
  • pay current liability as it becomes due even though it makes the payments as agreed under the payment agreement
  • Prepare the case for validation and factsheet ( INS11743).