Check if an insolvency work item already exists in IDMS using Work List and Trace Taxpayer (use the toolbar button or the taxpayer dropdown list from the menu bar). If you find an 880 reference you will need to raise a new record and cross-reference it.
If you trace more than one taxpayer record use TIS to establish the correct taxpayer.

Do not raise an insolvency work item on 939 D (Class 2 NI) work items. If ownership of a 939 D work item has been transferred to ICHU, return it to the local office.

Do not match an insolvent notified to you with a taxpayer on the Direct Tax systems ifyou are not certain that they are one and the same. If you have any doubt, ask your Team Leader for advice.

Public Department (PD) cases

These sensitive cases are handled by PD Districts. You can identify them by the Responsible Office numerals 940 or 975.

Do not create a case on IDMS for PD cases.

Instead

Pass the cases (This text has been withheld because of exemptions in the Freedom of Information Act 2000)to be processed clerically.

Insolvency work item exists

Pass all information to the appropriate ICHU Examiner.

No existing insolvency work item exists

Exit IDMS and check the appropriate Head of Duty system including

ECS (to trace any PAYE reference) and Companies House
PAYE Service/CODA, DCI, NIRS 2 (make a note of the NINO if present to enter in IDMS Designatory Data later) and Debtor Trace.

The order for tracing is

Insolvency reference
Case name
IDMS (within own OU)
PAYE Service/CODA
DCI
SA
IRIS
BROCS
COTAX
CRN (Company Registration Number)
ECS
NIRS 2
Debtor Trace

Taxpayer traced on Head of Duty systems

Enter IDMS and using the Head of Duty references trace taxpayer to establish whether there is an IDMS record.

If an IDMS record exists

Create an insolvency work item as below using the existing Head of Duty type on the taxpayer record. But note that you cannot do this when the work item is for an NTC overpayment and you should create an insolvency work item using the guidance below when no IDMS record exists.

Do not create an insolvency work item from a 939 D work item. If ownership of a 939 D work item has been transferred to ICHU, return it to the local office.

If no IDMS record exists

Create an insolvency work item as below then
Create a taxpayer record.

Self Assessment (SA) does not yet fall within IDMS so if there is no other debt within IDMS such as PAYE

Create a taxpayer record and an insolvency work item.

Taxpayer traced on Head of Duty systems: EIS cases

Take the action as for taxpayer not traced.

Taxpayer not traced on Head of Duty systems

Create an insolvency work item using Head of Duty type F as below.

Create insolvency work item from existing Taxpayer record

In TIS from the PAYE taxpayer record, if there is one, select Create Work Item (use the toolbar button or the Work Item dropdown list from the menu bar).
In the Work Item Type field select Insolvency Claim then OK.
Use the New Work Item window to enter details in Create Work Item.
In the ASN field enter details of the tax year in which the case was raised, for example enter the 2003–04 tax year as 200401.
In A/P year end field enter the day immediately before the relevant date.
Select OK.

This will return you to TIS showing the insolvency claim work item details.

In TIS select Taxpayer from toolbar.
From taxpayer dropdown select ‘EO reference’ and then ‘Allocate’.
The system will generate a unique reference number and you must input 3 alpha characters.

Input alpha characters as follows: Company cases when the OR/AiB is acting COR and company cases when an IP is acting CIP. To further identify certain categories of company cases, if it is a Members’ Voluntary Liquidation use MVL and if it is Revenue Petition use REV. In individual cases when the OR/AiB is acting DOR and individual cases when an IP is acting DIP. To further identify certain categories of individual cases, if it is a Potential Consumer Bankruptcy use PCB, Debtor No Trace use DNT, Revenue Petition use REV and Tax Credit Overpayment use TCD. In VA or trust deed cases use VAS.

Select OK.

Create insolvency work item when no existing taxpayer found

When in Work List select Work Item from toolbar.
From the Work Item drop-down menu select Create.

The New Work Item box is displayed.

In the TP Ref fields enter ‘F’ in the middle box.
In Work Item type field select ‘Insolvency Claim’ from the drop-down list.
Select OK.

You will now see the Allocate EO Reference screen (when the system will generate a unique EO Reference Number).

Input the three alpha-characters as above.

You will then see the Create Taxpayer screen.

Input all known information such as Name, trading name and address, NINO or CRN.
Ensure the NINO is checked against NIRS2 to make sure it refers to that taxpayer and to check if there is a Class 2 debt (if no SA record has been found).
Select OK.

IDMS will then display Create Work Item.

In the ASN field enter details of the tax year in which the case was raised. For example, for the 2003–04 tax year enter 200401
In the A/P year-end field enter the day immediately before the relevant date.
Select OK.
Add a Record Action to show all systems and references traced and to show if there is a Class 2 liability.
In TIS highlight the insolvency work item and from the work item dropdown list select Proceedings Details to access the Proceedings History screen.
Select New.
In the General Tab enter ‘Court Type’ and ‘Court Name’ in the relevant drop-down menus.
In the EO/Sols/Insol Svcs Tab, in the relevant fields enter ‘type of liquidation’ and ‘relevant date’
Select OK.

Note: You cannot change these details after the Examiner issues the claim.

Enter the IP details

Enter TIS and use the button or taxpayer drop-down list to enter the Designatory Data, Other Addresses Tab.
Use Add, go to New Address, select Insolvency Practitioner to access IP address for taxpayer.
Select and enter the IP details

click on the IP Firm button to display the list of firms on the database
scroll down to find relevant firm, highlight the firm and double click
click on IP Firm Address button
highlight the relevant address and double click
click on IP button
highlight the relevant name and double click.

In Official Receiver (OR) cases

Click on IP firm button and select name of the town in which the OR is located.
Highlight the town and double click.
Click on Firm Address.
Highlight the relevant address and double click.
Click on IP button.
Select Official Receiver
Highlight the relevant entry and double click.

When recorded in Designatory Data the IP details will appear as the Recovery Address in TIS.

In Designatory Data, EIS/SOLS Details Tab in the Insolvency Services Caseworker field, enter the Team Leader’s name and phone number.

If there is more than one taxpayer record

Cross-reference them.

(At this stage, as you do not own the IDMS work items, you cannot link these to the insolvency work item until ownership is changed.)

EIS Worthing or Edinburgh non-petition cases

Issue form INSOL200 for any case for which the taxpayer record for a non-Revenue Petition case is working at EIS Worthing or Edinburgh.

When registering a company case (liquidations only) which is working at EIS

Check the COTAX VTPR (View Company details) screen to establish whether a company administration is involved. If so, the screen will show the date of the administration order (with the administrator's name and address - the liquidator may be the same as the administrator).

When the exit route from a company administration under the Enterprise Act 2002 is by way of liquidation, whether a court winding up or conversion to a Creditors' Voluntary liquidation, the liquidator's appointment is announced in the Gazettes. Such cases will already be working at EIS but you should

Register any such case as a new (liquidation) case.
Use the date of the administration order as the relevant date.

EIS Worthing or Edinburgh petition cases

Trace IDMS for an existing Insolvency Work Item.

If Insolvency Work Item exists

Pass all information to the appropriate ICHU examiner.
Advise EIS of the ICHU EO reference by e-mail to the sender.
EIS will change ownership in the same way as a recovery office ( INS2107).

If no Insolvency Work Item exists

Go into existing EIS case (880 for Worthing, 623 for Edinburgh) to obtain details of

Address of taxpayer or company.
NINO / PAYE / CT reference (company), and
Check NINO on NIRS2 to confirm it is the correct number for the taxpayer.
If the COTAX reference is not known use the CRN to trace on the COTAX system

Use the information found to create an insolvency work item using Head of Duty type ‘F’ (following guidance at INS7103 ‘Create insolvency work item from existing Taxpayer record’)
Advise EIS of the ICHU EO reference by e-mail to the sender
EIS will change ownership in the same way as a recovery office ( INS2107)

When ownership has been changed to OU 075 (ICHU), check that all appropriate actions have been taken by EIS and take any corrective action as appropriate.

Check that EIS has

set the insolvency signals on the appropriate records
recorded the insolvency reference on the appropriate records
inhibited PAYE reminders for an administrative receivership (receivership in Scotland) if the debtor is an employer
arranged for SA statements to be inhibited in all cases, except in non-Official Receiver (IP appointed) cases in England and Wales (statements should only be inhibited if requested by them)
carried out all necessary interest repairs
set the BY signal on IRIS for any legacy debts stood over
changed ownership on all the debtor’s computer records to that of ICHU using identifier 075 and in SA before changing ownership to ICHU 307500.

If any of this has not been done

Correct it before changing ownership to the claim Examiner.

Issue Notification (form INSOL200)

Claimable debts

Before issuing form INSOL200 make sure that all appropriate Taxpayer records have been cross referenced.

In IDMS TIS

Highlight insolvency work item and from the forms menu select ‘Issue Notification’.

The Issue Notification screen will display the

HMIT office number of the Taxpayer record
postcode if available from the Taxpayer record
reference number of any cross referenced Taxpayer records.

If there is no IDMS record, type in the reference boxes the NINO or CRN, SA reference or any other Head of Duty reference.

If all systems are not available, only type in the references you have identified.

After you have checked all the systems, by selecting OK, issue the notification on form INSOL200 to the HMIT office and Recovery Office and, if appropriate, to EIS and the APS Network Unit (if there is a related IDMS work item).

In all cases issue the INSOL200 to the HMIT office. You must also issue an INSOL200 to the Employers Section if it is not within the same office (that is, if the first three numbers of the PAYE and COTAX references are different).

The HMIT office number and postcode are automatically populated from the Taxpayer record (except cases raised as 075F HoD types). To issue an INSOL200 to the Employers Section, after you have issued an INSOL200 to the HMIT office, delete the HMIT office number and type in the number of the Employers Section office to which you want to issue the INSOL200. Then issue it by selecting OK.

Enter TIS, and in Record Actions (use the toolbar button or the menu bar Work Item dropdown list)

note the details of the source from which the case was raised, any manual (LFC) forms issued. .
then set the Next Action as ‘Lodge Claim’ (for a 28-day BF).

On expiry of the BF, or when ownership changes, it will appear on the Registration Worklist.

No claimable debts

Complete and issue form INSOL200(2) using the LFC template to the Service/Processing Office only.

Special Trade Investigation Unit (STIU) cases

Note the insolvency work item that it is a STIU case then issue form INSOL200 to the local Recovery Office. It will notify STIU.

Administrative Receiver or Liquidation cases

Deal with as a new case

a company winding-up following an administrative receivership (receivership in Scotland)

or

an administrative receivership (or receivership in Scotland) following a company winding-up.

Note IDMS with the reference details of the earlier case and then Move To Examination Claim to remove it from the registration work list and pass to the Examiner.

Deceased insolvent estates

Issue form INSOL200 to the local Recovery Office in the normal way.

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