DMBM803720 - Time To Pay: Setting up Time To Pay: Self Assessment cases
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Where the debt is not on IDMS
Where Time To Pay (TTP) is agreed before the due date or before the debt is on IDMS. The arrangement details must be entered in SA.
In order to be able to enter the details on SA
- there must be a charge on SA, and
- the payment dates and amounts must be regular.
Where the customer cannot pay regular amounts you should try and negotiate a minimum amount that they will pay. This is so the Direct Debit payment plan can run effectively; see the NDDS005聽Create TTP plan helpcard and NDDUG3525.
To enter the details on SA you need to access the 鈥楾axpayer Designatory Details鈥� screen. Then you must:
- select the 鈥榮ignals鈥� button
- select the 鈥榰pdate鈥� button
- select the 鈥楾ime to Pay鈥� button.
Once in this function you can either:
- set up a new TTP arrangement
- amend the start date of any current arrangement
- cancel the most recent TTP arrangement.
If you need to amend an arrangement it is important to make sure that the start and the end dates are correct. If you renegotiate a current TTP arrangement and accept the revised proposals, do not change the start date in SA unless the original arrangement was cancelled. If you inappropriately change the start date of a TTP arrangement in SA, you are likely to cause a late-payment penalty (LPP) or surcharge to be issued inappropriately.
Note: if a TTP date already exists in SA for a previous arrangement that has successfully completed you must never change the start date in SA when setting up or amending future arrangements. If you do it is likely to cause the issue of inappropriate LPPs or surcharges.
Once the TTP details have been entered onto SA they will automatically pass to IDMS to monitor the payment position. In default IDMS will either issue a letter automatically or will pass the case for review.
Part of the debt is on IDMS
When a TTP is agreed or renegotiated and part of that debt is on IDMS and the rest is only on SA, you must create a work item for any of the debts not on IDMS (for help on creating work items see helpcard TTP1010).
When negotiating a TTP close any existing Instalment Arrangement (IA) using function 鈥楥omplete鈥� and after linking in new debts reset up the IA using the original agreement date. Amend TTP signals on SA to match the new TTP details that are on IA. Failure to extend the end date will result in late payment penalties being raised when the original end date expires.
To enter the details on SA you need to access the Time to Pay Officer role and set the 鈥楾axpayer Designatory Details鈥� screen. Then you must
- select the 鈥榮ignals鈥� button
- select the 鈥榰pdate鈥� button
- select the 鈥楾ime to Pay鈥� button.
Once in this function you can:
- set up a new TTP arrangement. Take care to:
- add two weeks onto the expected end date
- enter either a Y or N in the Inhibit Letters box, do not leave it blank
- make sure you amend the frequency as it automatically defaults to weekly
- amend the current arrangement or
- cancel the most recent TTP arrangement.
Note: DRT聽do not create pseudo work items and when creating the Time To Pay arrangement on SELECTA in the Instalment Arrangement Summary box under Is IDMS IA appropriate select NO and Reason: Require IDMS WI creation. DRT聽guidance then advises 鈥淲here you have been unable to set up IA on IDMS. Exit IDMS C/W TPU and Log into IDMS C/W SA, set TTP Monitor 鈥� BF date of 10 days after the next payment is due鈥�.
All of the debt is on IDMS
When a TTP is agreed and the debt is on IDMS you must use the IA function to set up the arrangement. You must not set up an arrangement in SA if the debt is already on IDMS as the TTP details will not pass to IDMS in these circumstances.
If adding debts to a case with an existing TTP arrangement, close any existing IA using function 鈥楥omplete鈥� and after linking in new debts reset up the IA using the original agreement date.
When setting up an IA or renegotiating a TTP arrangement check whether there are any live TTP signals set on SA. If there are, amend these to match the arrangement you have set up on IDMS. Failure to extend the end date will result in late payment penalties being raised when the original end date expires. If there are no live signals setting up an IA on IDMS is sufficient.
To enter the details on SA you need to access the Time to Pay Officer role and set the 鈥楾axpayer Designatory Details鈥� screen. Then you must:
- select the 鈥榮ignals鈥� button
- select the 鈥榰pdate鈥� button
- select the 鈥楾ime to Pay鈥� button.
Once in this function you can:
- set up a new TTP arrangement. Take care to:
- add two weeks onto the expected end date
- enter either a Y or N in the Inhibit Letters box, do not leave it blank
- make sure you amend the frequency as it automatically defaults to weekly
- amend the current arrangement or
- cancel the most recent TTP arrangement.
Full details on how to use the IDMS IA function are at IDMSUG501400.
One-off payments
In appropriate cases you may agree that the customer can make a one-off payment at a future date to clear their debt. Where the customer approaches you before the LPP/surcharge trigger date and payment in full will be made after the trigger date you will need to enter the following details on the IA function in IDMS or the TTP function in SA to avoid the inappropriate issue of a LPP or surcharge:
- 1st payment date should be the date when payment is due to be made
- 1st payment amount should be the total debt less 拢5
- regular payment amount should be 拢5
- regular payment frequency should be monthly
- review date should be 10 days from the expected payment date
- letters should be inhibited.
Inappropriate LPP or surcharge issued
Occasionally we may agree a TTP that meets the conditions for us not to impose a LPP or surcharge but one is issued because the appropriate signals have not be set in SA before the cases are selected for LPP/surcharge issue.
Customer is聽maintaining the arrangement
Where the customer meets the criteria for us to not impose the LPP or surcharge yet one has been issued, you should informally standover the LPP/surcharge. To do this:
- use function 鈥榤aintain standovers鈥�
- enter the UTR
- select function 鈥榲iew statement鈥�
- enter the statement line of the LPP/surcharge
- select 鈥榮tandovers鈥�
- select 鈥榠nformal standover鈥�.
You will need to monitor the arrangement to make sure that the customer successfully completes the arrangement. If they do so you should follow the guidance below. You will need to keep a manual BF to remind you to cancel the LPP/surcharge at the end of the arrangement.
Enter a BF date/note on W019 Informal Stand Over list via the Clerical Caseworker role using Case Summary / Work. If the work button is 'greyed out' check that the case is working with TTPMO. To do this click on Office within the Case Summary screen if the SA Collection office is not the relevant TTPMO OU you will need to go into the Clerical Caseworker role under the office held (for example,聽366900) and change it to the TTPMO office (for example, 367200). When you return to your original Clerical caseworker role the Work button can now be accessed.
Customer successfully completes the arrangement
Where the customer has successfully completed the arrangement you will need to cancel the LPP/surcharge. To cancel a surcharge/LPP:
- access Review Int Officer-Collection role
- enter the UTR
- select function 鈥榲iew statement鈥�
- enter the statement line of the surcharge/LPP
- select 鈥榮urcharge鈥� and select 鈥榗ancel
- or 鈥榩enalties鈥�, enter Cancelled Reason 4-Reasonable Excuse from the drop down menu; enter a 鈥榊鈥� in the box alongside the penalty that you wish to cancel and select update.
Where the surcharge/LPP has been informally stoodover you will first need to cancel the informal standover before you can cancel the surcharge/LPP. To do this:
- access Appeal Handler-Collection role
- enter the UTR
- select function 鈥榲iew statement鈥�
- enter the statement line of the surcharge/LPP
- select 鈥榮tandovers鈥� and
- select 鈥榠nformal standover鈥� and enter the amount 0.00.
LPP/surcharge when TTP is cancelled
If a customer does not make the agreed payment(s) or there is a need to cancel TTP for another reason, the LPP/surcharge concession no longer applies and appropriate LPP/surcharges will be automatically raised as if there had been no TTP arrangement.
When an IA is cancelled on IDMS SA is updated and will raise any appropriate surcharge at the next LPP/surcharge selection date. The LPP/surcharges will be based on the unpaid amount at the relevant LPP/surcharge trigger dates (see DMBM803610).
However, if the TTP is manually cancelled (for example, closing IA on IDMS by selecting 鈥楥omplete鈥� and issuing a cancellation letter then SA TTP signals will need to be manually updated. In the SA Time to Pay Officer role enter a 鈥榊鈥� in the 鈥楥ancelled鈥� box on the 鈥楾ime to Pay Arrangements鈥� screen. Failure to do this will result in a failure or delay in raising surcharges/LPPs due.
Where the LLP/surcharge has been informally stood over, you will need to cancel the informal standover using the鈥檓aintain standover鈥� function.
If a cancellation letter has been issued inappropriately or exceptionally a cancellation letter leads to a renegotiated TTP, and you consider the original TTP start date should apply, follow the guidance above headed inappropriate LPP/surcharge issued.