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HMRC internal manual

Complaints and Remedy Guidance

HM Revenue & Customs
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Large ex gratia redress payments

All proposed redress payments made to complainants over £5,000 must be authorised at Director-level. The Director must also sign the letter notifying the customer of the payment.




Once you have completed your action and decided that a redress payment in excess of £5000 is justified you should:

  • Complete the Financial Special Payments form (or local business template) for the Director to sign – in most parts of HMRC, the payment will be made online via SAP but others will send the completed Financial Special Payments form to Worthing;
  • draft the notification letter to the customer (which in most cases will be the response to the complaint);
  • forward both to your Director with a covering report explaining the background and setting out why the payment is justified and the amount proposed reasonable; and
  • complete ECCS to explain clearly why the payment has been made and the name of the Director authorising the payment.


Directors should sign off the authorisation form and sign the notification letter if they are content that it complies with our guidance: .

Specifically that:

  • we have made a mistake or caused unreasonable delay in handling the customer’s tax affairs;
  • Our mistake has directly resulted in the customer suffering financial loss:
  • The amount is reasonable and proportionate:
  • Evidence of the loss is robust e.g. payments claimed for reimbursement of agent costs have been incurred by the customer:
  • If the payment is for worry and distress or poor complaints handling (payments over £5000 should be very exceptional and any consolatory payment of £1000 or more must be agreed by CCAST), that the guidance at has been applied.


Exceptionally, if the Director is unavailable, a Deputy Director should authorise and issue the notification letter to avoid any delay.


If you have any queries or concerns about a large redress claim or payment,  you should seek advice from CCAST (DL-CCAST Team).

Large Redress Payments