SolvedCOM110010 | Pursuit: automatic and clerical pursuit: status and pursuit
From HM Revenue & Customs · COTAX Manual
This subject is presented as follows
Understanding the general state of an Accounting Period (AP)
Accounting Period (AP) status
Accounting Period (AP) status
Pursuit status
Change of pursuit status - general
Change of pursuit status - Existing pursuit status is LA
Change of pursuit status - Existing pursuit status is PLA
Change of pursuit status - Existing pursuit status is LA-ENF
Change of pursuit status to RFI
Due date
Pursuit of an AP should not begin until the due date (See Glossary) has been reached. The due date depends on:
whether the AP is a Quarterly Instalment Payment case
the type of charge outstanding
You can view the quarterly instalment due dates in the credit interest/debit interest screens in function DINT (Display Interest Computation).
The normal due date for the tax charge can be viewed in the charge interest screens in function DINT (Display Interest Computation).
Understanding the general state of an Accounting Period (AP)
The current status or general state of an AP is displayed on screen under three descriptions. These are:
AP status
Accounting Period status
Pursuit Status
Accounting Perriod (AP) status
The AP status has a value of 'live', 'superseded', 'dormant' or 'exempt'.
You can view the AP status using Function DAPD (Display AP Details) screens COT213C and COT213D.
Accounting Period (AP) status
The AP status is a combination of two factors:
the AP status
whether the AP is currently overpaid, underpaid or neither
The following table explains this.
| AP Status | Amount on the AP | Accounting Period Status |
|---|---|---|
| LIVE | No charge and no payments | LIVE WORKING |
| LIVE | No collectible amount | LIVE CLEARED |
| LIVE | Overpaid or underpaid | LIVE WORKING |
| SUPERSEDED | No collectible amount | SUPERSEDED CLEARED |
| SUPERSEDED | Overpaid or underpaid | SUPERSEDED WORKING |
| EXEMPT | N/A | EXEMPT |
You can view the Accounting Period Status in Function VPPD (View Payment and Posting Details).
Pursuit status
The Pursuit Status tells you about the stage of recovery reached on the AP. The AP has one of nine values. The values are:
for cases not working clerically:
AUTO
OVERPAID
SUSPENDED
CLEARED
For cases working clerically, that is subject to clerical pursuit:
RFI
PRFI
LA
LA-ENF
PLA
For more Information on pursuit signals see COM110024
You can see the Pursuit Status using function VPPD (View Payment and Posting Details) screen COT215C.
Please note that: If COTAX changes the Pursuit Status on an AP to LA automatically, the value of the local action pursuit signal is not changed. This signal is only changed when you set the clerical pursuit signal 'Local Action' to 'Y' using Function RAPP (Revise AP Pursuit).
Change of pursuit status - general
The Pursuit Status may be changed automatically or clerically.
If the Pursuit Status changes the existing clerical pursuit status signals do not necessarily change.
If the amount collectible becomes nil, that is when the Accounting Period (AP) is balanced, the Action History Type in function DPUR (Display Pursuit Action) shows ACCBAL. If the AP becomes unbalanced, for example, if an interest charge is raised, the Action History Type is changed to CANA/B. COTAX automatically resumes the appropriate next action for the amount collectible.
Details of changes of local Pursuit Status are as follows.
Change of pursuit status - Existing pursuit status is LA
Where the existing Pursuit Status is LA, the Pursuit Status changes automatically where
Payment is received and posted to the COTAX record, reducing the amount collectible to nil
The collectible amount is amended to nil by either of the following:
charge adjustment
postponement posting
stand-over release order
The Pursuit Status is changed to CLEARED.
If the Pursuit Status is changed back from CLEARED to AUTO, COTAX resumes payment application issue. This action is a potential source of complaint particularly where the company has been in correspondence with you. It is particularly important therefore that you set the PLA signal for the appropriate Permanent Local Action (PLA) cases.
You cannot change the LA Pursuit Status clerically.
Change of pursuit status - Existing pursuit status is PLA
Where the existing Pursuit Status is PLA, COTAX automatically changes the Pursuit Status to AUTO when an overpayment arises.
If you are responsible for the case, you can cancel the PLA signal using function RTPP (Revise Taxpayer Pursuit). This changes the Pursuit Status on all uncleared APs for the company.
Change of pursuit status - Existing pursuit status is LA-ENF
Where the existing Pursuit Status is LA-ENF, COTAX automatically changes the Pursuit Status to CLEARED when the collectible amount becomes nil.
Where there is a collectible amount and you decide not to start enforcement proceedings or proceedings are abandoned, you can set the LA Enforcement Proceedings signal to 'N' using Function RAPP (Revise AP Pursuit). If there is no manual interest charge the Pursuit Status changes to LA or PLA.
Change of pursuit status to RFI
COTAX automatically changes the Pursuit Status to RFI where
An Accounting Period (AP) becomes underpaid or overpaid and one of the following apply:
PRFI is set
the CII is set to 'Y'
the Credit/Debit Interest Indicator (CDII) is set to ‘Y’
An AP becomes underpaid and one of the following apply:
the AP was cleared by manual remission
a suspension is present
apost dated cheque suspension is present
the AP was cleared by informal discharge
A repayment is generated on an AP as a result of:
A further loss carry back posting
Relief given under S458 CTA 2010
Any of the above conditions apply and the AP was previously LA
COTAX generated RFI cases are included on the ‘Cases Working Clerically List’ (LCWC) for attention. For more information about this work list see COM114000 and COM140000 onwards.
For a list of functions to use in particular situations, see COM110011.
For Information on "CII" and "CDII" see COM95015