INS10407 - Monitoring VAs

Post-VA monitoring (Blue cases: VA from 29.1.2001)

Introduction

Monitoring procedures

Band 1 PAYE

Band 2 PAYE

Band 3 PAYE (or lower)

Self Assessment

Corporation Tax

Introduction

Priority 1 VA cases are monitored by Band D Examiner caseworkers using the Elapsed Time spreadsheets.

Priority 2 and 3 VA cases are monitored by Band E1 Assistant Examiner caseworkers using the Elapsed Time spreadsheets.

The cases are monitored regularly and contact is made with

• the debtor as soon as post-VA liability or returns become outstanding
• the supervisor when information required by the terms of the arrangement or the annual report required by the legislation is not received, or
• action is taken to refer the case to the Post-VA Debt Monitoring Support Team (PMST) for follow up using recovery and enforcement procedures.

Monitoring procedures

The type of monitoring action varies according to the type of debt and case.

Band 1 PAYE

Band 1 under BROCS means that the expected monthly yield of PAYE liability is over £10,000 a month. (They are shown as category ‘1’ on the Elapsed Time spreadsheet.)

• Check the post-VA PAYE scheme reference on BROCS each month to find out if payments are up to date.

If payment has not been made

• Check the pre-VA Scheme PAYE scheme reference on BROCS to see if the payment has been wrongly allocated. If it has,

• Contact the taxpayer and ask them to use the correct payslips and reference when they send the payments to APS.
• Check IDMS Action History to see if any action has been taken or correspondence received. If so

Unless the case has been requested by PMST because Customs and Excise have told you they have a debt (if so, you must transfer the case within five days of the notification from C&E)

• ‘Establish’ the PAYE debt using the procedures in the Estimated PAYE Guidelines in EIS
• After a post-VA debt is established refer the case with the Checklist to the Post-VA Monitoring Support Team.

Band 2 PAYE

Band 2 under BROCS means that the expected monthly yield of PAYE liability is £4,500 to £9,999 a month. (They are shown as category ‘2’ on Elapsed Time spreadsheet.)

• Check the post-VA PAYE scheme reference on BROCS every three months to find out if payments are up to date.

• • Check the pre-VA Scheme PAYE scheme reference on BROCS to see if the payment has been wrongly allocated. If it has,
  • Reallocate the payment to the post-VA PAYE scheme

  • Contact the taxpayer and ask them to use the correct payslips and reference when they send the payments to APS.

• Check IDMS Action History to see if any action has been taken or correspondence received. If so

• Take the appropriate action and prepare the case for transfer to the Post-VA Monitoring Support Team (PMST).

Unless the case has been requested by PMST because C&E have told you it has a debt (if so, you must transfer the case within five days of the notification from C&E)

• ‘Establish’ the PAYE debt using the procedures in the Estimated PAYE guidelines for EIS
• After a Post-VA debt is established refer the case with the Checklist to the PMST.

Band 3 (or lower) PAYE

Band 3 (or lower) under BROCS means that the expected monthly yield of PAYE liability is less than £4,500 a month. They are monitored by E1 caseworkers using the E1 Elapsed Time Spreadsheet

• Check the post-VA PAYE scheme reference on BROCS every six months (or every three or twelve months for quarterly or annual payment cases) to find out if payments are up to date.

• Check IDMS Action History to see if any action has been taken or correspondence received. If so

Unless the case has been requested by PMST because C&E have told you it has a debt (if so, you must transfer the case within five days of the notification from C&E)

• ‘Establish’ the PAYE debt using the procedures in the Estimated PAYE Guidelines for EIS
• Once there is a post-VA debt over £2,000 established refer the case with the Checklist to the PMST.

Self-Assessment

Payments on account (POAs) are not automatically raised for the new (post-VA) UTR reference

• the VAS voting team might ask for the POA to be created when they ask for the new (post-VA) UTR reference to be set up, or
• before 31 January of the post-VA year, the Monitoring Team caseworker should ask for the POA to be created when they review the case or check the annual report.

If the first POA is paid

• Check SA six-monthly to make sure the SA is up to date.

If a post-VA SA debt has been confirmed as outstanding

• Refer the case with the Checklist to the PMST.

Corporation Tax

Review the Corporation Tax (CTSA) on the COTAX system when you review the supervisor’s Annual Report.

If a post-VA SA debt has been confirmed as outstanding

• Refer the case with the Checklist to the PMST.

Indirect Taxes

When details of Indirect Taxes post-VA liability are faxed from Liverpool Head Office to Indirect Taxes staff within VAS it is co-ordinated with the Monitoring Team and PMST records.

The Monitoring Team Examiner

• Checks all Head of Duty systems and the APS Network Units for any post-VA IR debt outstanding

• Refers the case (within five days of the indirect Taxes faxed details) to the PMST with a note of the result of its check (either that no IR post-VA debt was found or giving the details of the debt).