Payments: processing payments: processing payments received in a local office
From 1 April 2011, it became mandatory for companies and organisations to pay all Corporation Tax and related payments electronically. However, there may be occasions when a payment is received in a local office and you should deal with them as follows.
Payments at an HMRC office
Companies wishing to make payment in person should take their payment to a local post office, a bank branch (preferably their own) or be encouraged to pay by an alternative electronic method such as Direct Debit, online debit or credit card using Bill Pay, Bacs Direct Credit, Faster Payments by internet or telephone banking or CHAPS.
Companies can use post offices and banks if they are paying by cash or cheque. You should advise companies that cheques paid at a post office should be made payable to ‘Post Office Ltd’. Post offices also accept payment by debit card and HMRC classes these payments as electronic.
If the company needs a payslip you should use the Print Payslip facility where possible. Post offices may refuse to accept amended payslips so you must ensure the company has a correctly completed payslip before directing them to make a payment at a post office.
If the company insists on making payment at the office, you should try to encourage the company to pay using a debit or credit card rather than accept payment by cheque or cash.
It became departmental policy not to accept cash payments in March 2006, but there may be exceptional circumstances where you have no option but to accept the payment after exploring all other methods. You should explain that the payment will be accepted on this occasion but other methods must be used for future payments, then deal with the payment as if it had been received in the post.
Payment received in the post
Any cheque received should be sent with accompanying payslip or payslips to BancTec on the day of receipt using the TNT Track and Trace service.
Where, exceptionally, you accept or receive a cash payment, you must process the payment immediately. You must count the cash and record the details of the payment, always in the presence of a supervising officer.
Cash payments received in the post or, exceptionally, accepted from the company are paid in at a local post office. You can either do this in person or use the TNT Track and Trace service.
Any cash payment must always be held securely in the office until arrangements are made for it to be banked.