INS11709 - Seven-day demand letter
Response to seven-day demand letter
Introduction
Payment in full
Payment proposal made
No response to the acceptance letter
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.
- 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.
- 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.
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).
Introduction
