SolvedTCM0286510 | Specialist areas: early targeted action: penalty debt recovery
From HM Revenue & Customs · Tax Credits Manual
Checklist
Before you follow this, make sure
you have the correct user roles to follow this guidance.
you have access to the Penalty Debt CAF
you have access to the Direct Debit System (NDDS)
you have access to the Telephone Payment Service (TPS)
you have access to NTC AMB
the ‘Debt Recording Spreadsheet’ held in the CAF.
Background
Early Targeted Action (ETA) Debt recovery is a process that has been introduced to contact the customer nearer the time the debt has been created to discuss repayment. This process can be applied to any direct recovery debt where there is no ongoing award available to recover the debt or to penalty charges. The ETA process involves an outbound call to the customer to secure payment and uses Debt Management and Banking systems to record payments.
Guidance
Note: When sending customer, staff or process data to another individual or team, make sure you follow the latest data security guidelines or contact the Data Guardian or Data Security Team for advice.
Step 1
Access the ‘Debt Recording Spreadsheet’ located in the CAF.
Note: For any issues with accesses please contact your manager.
make a note of the SAFE Penalty Charge reference of the case that you are working
keep the ‘Debt Recording Spreadsheet’ open
complete ‘Debt Recording Spreadsheet’ as you work through this guidance
go to Step 2.
Step 2
Check that you are working the case within 14 days from when the case was entered on the spreadsheet.
Note: On day 15 reminders are issued by SAFE
If the case you are working is within 14 days from when it was entered on the spreadsheet, go to Step 3.
If the case you are working is not within 14 days from when it was entered on the spreadsheet, take no further action.
Step 3
Check SAFE system to confirm if a penalty is outstanding, also check household notes under ‘Debt’ category to confirm if payment in full or ‘Time to Pay’ (TTP) has been set up for the debt as this payment may not yet be shown on the SAFE system.
If a TTP arrangement has been set up
update ‘Debt Recording Spreadsheet’ using the option ‘Payment/TTP already made’ from the ‘Outcome of the call’ dropdown menu
update Household Notes with the message OT14 from TCM0166040. For how to do this, use TCM1000001
Note: The household note should be ‘Retained’ and recorded under the category ‘Debt Recovery’.take no further action.
If payment in full or a TTP arrangement has not been set up, go to Step 4.
Step 4
Phone the customer and confirm their identity
Note: If you have not been able to contact the customer on the first attempt, make two further attempts at different times and on different days.
If you are able to contact the customer by phone
at the start of the call ask for the customer by title and surname
once you are happy that you are speaking to the correct person, tell the customer
your full name
that you are calling from Her Majesty’s Revenue and Customs
that you are ringing in relation to their Penalty Charge
that in order to proceed with the call you need to ask some security questions. For how to do this, use TCM0094120.
go to Step 5.
If you are unable to contact the customer by phone on the first call attempt
update Household Notes with the message OT20 from TCM0166040. For how to do this, use TCM1000001
Note: Household note OT20 should be entered as a temporary note to raise awareness of the Penalty Recovery process.
If you are unable to contact the customer after two further attempts have been made
update the ‘Debt Recording Spreadsheet’ under the appropriate option from the ‘Outcome of call’ dropdown menu
remove the Household note OT20
update Household Notes with the message OT01 from TCM0166040. For how to do this, use TCM1000001
Note: The household note OT01 should be ‘Retained’ and recorded under the category ‘Debt Recovery’.take no further action.
Step 5
Verify the customer’s identity
If you have verified the customer’s identity and they are happy to proceed with the call, go to Step 7.
If you have verified the customer’s identity and they are not happy to proceed with the call, go to Step 6.
If you have not verified the customer’s identity
terminate the call with the customer
update the ‘Debt Recording Spreadsheet’ under the appropriate option from the ‘Outcome of call’ dropdown menu
update Household Notes with the message OT02 from TCM0166040. For how to do this, use TCM1000001
Note: The household note should be ‘Retained’ and recorded under the category ‘Debt Recovery’.take no further action.
Step 6
Establish the reason why the customer does not want to proceed with the call
If you have called the customer at an inconvenient time
ask the customer what time would be convenient to call them
advise the customer that you will call back at the agreed time (within working hours)
BF the case for the agreed date and time
thenat the expiry of the BF date and time return to this guidance at Step 1.
If the customer refuses to engage with you
tell the customer that Debt Management and Banking (DMB) will write to them in due course
update the ‘Debt Recording Spreadsheet’ using the appropriate option from the ‘Outcome of call’ drop down menu
complete the ‘Comments’ column with the reason why the customer refused to engage
update Household Notes with the message OT03 from TCM0166040. For how to do this, use TCM1000001
Note: The household note should be ‘Retained’ and recorded under the category ‘Debt Recovery’.take no further action.
If the customer does not believe that you are ringing from HMRC
tell the customer to call on 0300 2003854 advising that opening hours are 8am to 8pm Monday to Friday, and 8am to 4pm on Saturday
update the ‘Debt Recording Spreadsheet’ using the appropriate option from the ‘Outcome of call’ drop down menu
update Household Notes with the message OT04 from TCM0166040. For how to do this, use TCM1000001
Note: The household note should be ‘Retained’ and recorded under the category ‘Debt Recovery’.take no further action.
If the customer is unwilling to discuss the payment as they intend to appeal
tell the customer that interest will continue to accrue on the penalty charge during the review of the appeal and that the charge remains due and payable until the appeal is submitted in writing to the penalty officer who raised the charge
update Household Notes with the message OT16 from TCM0166040. For how to do this, use TCM1000001
Note: The household note should be ‘Retained’ and recorded under the category ‘Debt Recovery’.take no further action.
If the customer advises you that they have not received the Penalty Charge
tell the customer that the penalty notice will be re-issued
update Household Notes with the message OT19 from TCM0166040. For how to do this, use TCM1000001
Note: The household note should be ‘Retained’ and recorded under the category ‘Debt Recovery’.take no further action.
Step 7
Discuss repayment options with the customer and tell them that interest is chargeable on late payments.
If the customer agrees to discuss repayment options, go to Step 9.
If the customer agrees to discuss repayment options but cannot pay because they are unemployed and have no savings or assets, go to Step 19.
If the customer agrees to discuss repayment options but cannot pay because they are on sickness or incapacity related benefits, go to Step 8.
If the customer will not agree to discuss repayment options
tell the customer that Debt Management and Banking (DMB) will contact them in due course
update the ‘Debt Recording Spreadsheet’ using the appropriate option from the ‘Outcome of call’ drop down menu
update Household Notes with the message OT03 from TCM0166040. For how to do this, use TCM1000001
Note: The household note should be ‘Retained’ and recorded under the category ‘Debt Recovery’.take no further action.
If the customer advises that payments are currently being made against the NTC debt
tell the customer
that payments should be prioritised against the interest baring penalty charge
to phone on 0300 2003854 to arrange for further payments to be prioritised against the penalty charge
the opening hours are 8am to 8pm Monday to Friday, and 8am to 4pm on Saturday
update Household Notes with the message OT18 from TCM0166040. For how to do this, use TCM1000001
Note: The household note should be ‘Retained’ and recorded under the category ‘Debt Recovery’.take no further action.
Step 8
Check if the customer can make a payment at the present time
If the customer can make a payment, go to Step 9.
If the customer cannot make a payment because they are on sickness or incapacity related benefits
tell the customer
DMB will contact them at a future date and they should respond to that correspondence
to phone on 0300 2003854 if their condition improves
the opening hours are 8am to 8pm Monday to Friday, and 8am to 4pm on Saturday
update the ‘Debt Recording Spreadsheet’ using the appropriate option from the ‘Outcome of call’ drop down menu
update Household Notes with the message OT06 or OT07 from TCM0166040. For how to do this, use TCM1000001
Note: The household note should be ‘Retained’ and recorded under the category ‘Debt Recovery’.take no further action.
Step 9
Ask the customer how much they can repay
If the customer can repay the full debt immediately, go to Step 12.
If the customer can repay the full debt as a one off payment at a later date, go to Step 12.
If the customer can repay the full debt within three years, go to Step 12.
If the customer can repay the full debt but requires between three and ten years to do so, go to Step 10.
If the customer can pay the full debt but will take longer than ten years to do so, go to Step 11.
If the customer can only make a one-off part payment at the current time, go to Step 12.
Step 10
Follow the Tax Credit Negotiating Framework to negotiate an amount that the customer can afford in order to repay the debt in full
Note: TTP arrangement over three years should not be set up for an amount of less than £10 per month or £2 per week
If you have agreed a repayment schedule with the customer, go to Step 12.
If you have not been able to agree a repayment schedule with the customer
tell the customer DMB will contact them at a future date
update the ‘Debt Recording Spreadsheet’ using the appropriate option from the ‘Outcome of call’ drop down menu
update Household Notes with the message OT15 from TCM0166040. For how to do this, use TCM1000001.
Note: The household note should be ‘Retained’ and recorded under the category ‘Debt Recovery’.take no further action.
Step 11
Complete the Income and Expenditure (I&E) form if the customer is requesting an arrangement over ten years. You will then be able to make an informed decision based on the information obtained from the customer
Note: TTP arrangement over three years should not be set up for an amount of less than £10 per month or £2 per week
If an arrangement is accepted
file the electronic I&E form in the I&E sub folder set up in the CAF
go to Step 12.
If an arrangement is not accepted
tell the customer DMB will contact them at a future date
update the ‘Debt Recording Spreadsheet’ using the appropriate option from the ‘Outcome of call’ drop down menu
update Household Notes with the message OT08 from TCM0166040. For how to do this, use TCM1000001
Note: The household note should be ‘Retained’ and recorded under the category ‘Debt Recovery’.take no further action.
Step 12
Ask the customer if they will supply their bank or card details by phone
If the customer will supply their bank or card details, go to Step 14.
If the customer will not supply their bank or card details, go to Step 13.
Step 13
Ask the customer if they would like us to send them a Direct Debit form or Payslip to take to a bank or building society
If the customer would like a Direct Debit form sending to them
tell the customer to call on 0300 2003854 advising them that the opening hours are 8am to 8pm Monday to Friday, and 8am to 4pm on Saturday
update the ‘Debt Recording Spreadsheet’ using the appropriate option from the ‘Outcome of call’ drop down menu
update Household Notes with the message OT13 from TCM0166040. For how to do this, use TCM1000001.
Note: The household note should be ‘Retained’ and recorded under the category ‘Debt Recovery’.take no further action.
If the customer would like a Payslip to take to a bank or building society
tell the customer to call on 0300 2003854 advising them that the opening hours are 8am to 8pm Monday to Friday, and 8am to 4pm on Saturday
update the ‘Debt Recording Spreadsheet’ using the appropriate option from the ‘Outcome of call’ drop down menu
update Household Notes with the message OT12 from TCM0166040. For how to do this, use TCM1000001
Note: The household note should be ‘Retained’ and recorded under the category ‘Debt Recovery’.take no further action.
Step 14
In Step 9 you established the customer’s ability to repay their debt
If the customer can repay the full debt immediately, go to Step 15.
If the customer can repay the full debt as a one off payment at a later date, go to Step 16.
If the customer can repay the full debt within three years, go to Step 16.
If the customer can repay the full debt but requires between three and ten years to do so, go to Step 16.
If the customer can repay the full debt but requires longer than ten years to do so, go to Step 16.
If the customer can only make a one-off part payment immediately, go to Step 20.
Step 15
Access the Telephone Payment Service (TPS) to arrange a one off payment to repay the debt in full, for how to do this use Telephone Payment Service Helpcard.
If the payment has been authorised
end call with the customer
update the ‘Debt Recording Spreadsheet’ using the appropriate option from the ‘Outcome of call’ drop down menu
update Household Notes with the message OT09 from TCM0166040. For how to do this, use TCM1000001
Note: The household note should be ‘Retained’ and recorded under the category ‘Debt Recovery’.take no further action.
If the payment has been declined, go to Step 18.
Step 16
Access the National Direct Debit System (NDDS) to set up a Time to Pay (TTP), for how to do this use TCM1000551
Note: TTP arrangements over 12 months and within three years should not be set up for amounts of less than £4.99 per month or £0.99 per week.
Note: TTP arrangement over three years should not be set up for an amount of less than £10 per month or £2 per week
Once you have set up the TTP
ask customer if they would like you to read the Direct Debit Guarantee
go to Step 17.
Step 17
If the customer would like you to read the Direct Debit Guarantee
read the Direct Debit Guarantee to the customer
tell them they will also receive confirmation of their payments and the Direct Debit Guarantee in writing
end call with the customer
update the ‘Debt Recording Spreadsheet’ using the appropriate option from the ‘Outcome of call’ drop down menu
update Household Notes with the message OT11 from TCM0166040. For how to do this, use TCM1000001
Note: The household note should be ‘Retained’ and recorded under the category ‘Debt Recovery’.take no further action.
If the customer does not want you to read the Direct Debit Guarantee
tell them they will also receive confirmation of their payments and the Direct Debit Guarantee in writing
end call with the customer
update the ‘Debt Recording Spreadsheet’ using the appropriate option from the ‘Outcome of call’ drop down menu
update Household Notes with the message OT11 from TCM0166040. For how to do this, use TCM1000001
Note: The household note should be ‘Retained’ and recorded under the category ‘Debt Recovery’.take no further action.
Step 18
Ask the customer if they have another card that they could use to make payment
If the customer has another card and payment has been authorised
end call with the customer
update the ‘Debt Recording Spreadsheet’ using the appropriate option from the ‘Outcome of call’ drop down menu
update Household Notes with the message OT09 from TCM0166040. For how to do this, use TCM1000001
Note: The household note should be ‘Retained’ and recorded under the category ‘Debt Recovery’.take no further action.
If the customer does not have another card
tell the customer DMB will contact them at a future date
update the ‘Debt Recording Spreadsheet’ using the appropriate option from the ‘Outcome of call’ drop down menu
update Household Notes with the message OT10 from TCM0166040. For how to do this, use TCM1000001
Note: The household note should be ‘Retained’ and recorded under the category ‘Debt Recovery’.take no further action.
If the customer has another card but payment has been declined
tell the customer DMB will contact them at a future date
update the ‘Debt Recording Spreadsheet’ using the appropriate option from the ‘Outcome of call’ drop down menu
update Household Notes with the message OT10 from TCM0166040. For how to do this, use TCM1000001
Note: The household note should be ‘Retained’ and recorded under the category ‘Debt Recovery’.take no further action.
Step 19
Ask the customer if they are able to make a payment at the present time
If the customer is unable to make a payment
tell the customer
DMB will contact them at a future date
they will need to tell DMB their current circumstances when they contact them
if their circumstances improve before DMB contact them they should phone on 0300 2003854
the opening hours are 8am to 8pm Monday to Friday, and 8am to 4pm on Saturday
end the call with the customer
update the ‘Debt Recording Spreadsheet’ under the appropriate heading using the appropriate option from the ‘Outcome of call’ drop down menu
update Household Notes with the message OT05 from TCM0166040. For how to do this, use TCM1000001
Note: The household note should be ‘Retained’ and recorded under the category ‘Debt Recovery’.take no further action.
If the customer can make a payment, go back to Step 9.
Step 20
Access the Telephone Payment Service (TPS) to arrange a one-off payment to repay the debt in part. For how to do this, follow Telephone Payment Service Helpcard.
If payment has been authorised
tell the customer
that interest will continue to accrue on the penalty charge balance
DMB will contact them at a future date
if their circumstances improve before DMB contact them they should phone on 0300 2003854
the opening hours are 8am to 8pm Monday to Friday, and 8am to 4pm on Saturday
update the ‘Debt Recording Spreadsheet’ under the appropriate heading using the appropriate option from the ‘Outcome of call’ drop down menu
update Household Notes with the message OT17 from TCM0166040. For how to do this, use TCM1000001
Note: The household note should be ‘Retained’ and recorded under the category ‘Debt Recovery’.take no further action.
If the payment has been declined, go to Step 21.
Step 21
Ask the customer if they have another card that they could use to make the payment.
If the customer has another card and payment has been authorised
tell the customer
that interest will continue to accrue on the penalty charge balance
DMB will contact them at a future date
if their circumstances improve before DMB contact them they should phone on 0300 2003854
the opening hours are 8am to 8pm Monday to Friday, and 8am to 4pm on Saturday
update the ‘Debt Recording Spreadsheet’ under the appropriate heading using the appropriate option from the ‘Outcome of call’ drop down menu
update Household Notes with the message OT17 from TCM0166040. For how to do this, use TCM1000001
Note: The household note should be ‘Retained’ and recorded under the category ‘Debt Recovery’.take no further action.
If the customer does not have another card
tell the customer that
DMB will contact them at a future date
interest will continue to accrue on the penalty charge
if their circumstances improve before DMB contact them they should phone on 0300 2003854
the opening hours are 8am to 8pm Monday to Friday, and 8am to 4pm on Saturday
update the ‘Debt Recording Spreadsheet’ under the appropriate heading using the appropriate option from the ‘Outcome of call’ drop down menu
update Household Notes with the message OT10 from TCM0166040. For how to do this, use TCM1000001
Note: The household note should be ‘Retained’ and recorded under the category ‘Debt Recovery’.take no further action.
If the customer has another card but payment has been declined
tell the customer that
DMB will contact them at a future date
interest will continue to accrue on the penalty charge
if their circumstances improve before DMB contact them they should phone on 0300 2003854
the opening hours are 8am to 8pm Monday to Friday, and 8am to 4pm on Saturday
update the ‘Debt Recording Spreadsheet’ under the appropriate heading using the appropriate option from the ‘Outcome of call’ drop down menu
update Household Notes with the message OT10 from TCM0166040. For how to do this, use TCM1000001
Note: The household note should be ‘Retained’ and recorded under the category ‘Debt Recovery’.take no further action.