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HMRC internal manual

COTAX Manual

From
HM Revenue & Customs
Updated
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Payments: processing payments: processing payments received in a local office (Action Guide)

On receipt of a payment in any other office than DMB Banking, consider steps 1 - 21 below.

The guide is presented as follows.

Action on receipt of payment by cheque Steps 1 - 8
   
Action on receipt of payment in cash Steps 9 - 14
Action on receipt of payment by postal order Steps 15 - 16
Payment with a condition attached Steps 17 - 21

Action on receipt of payment by cheque

1. Examine the cheque carefully to ensure it is correctly completed, as detailed in the Debt Management and Banking Manual at DMB200160. In particular, you must ensure the cheque is:
   
  * payable to ‘HM Revenue & Customs’ or similar, such as ‘Collector of taxes’ or ‘HMRC’
  * dated not more than 6 months earlier than the date it will be banked
  * completed to show the same amount in words and figures
  * signed, with any alterations signed or initialled.
2. If the only error on the cheque is the absence of a payee:
  * satisfy yourself that the cheque is intended for HMRC
  * use the ‘HM Revenue & Customs ONLY’ stamp on the payee line.
3. If the cheque is incorrectly completed and it is not possible to bank it you should:
  * return the cheque to the company with a form C50 requesting a new payment to be made using one of our acceptable electronic payment methods
  * use function RSUS (Record / Amend Suspension) to suspend the amount of the cheque for a period of ten days, type ‘04’.
  Function DSUS (Display Suspension History) will display details of the suspension and the description ‘returned chq’.
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  * send the cheque to BancTec using TNT Track and Trace on the day of receipt, placing the cheque in an envelope marked ‘Direct taxes foreign cheque’ inside the polylope
  * use function RSUS (Record / Amend Suspension) to suspend the amount of the cheque for a period of 21 days, type ‘05’.
  Function DSUS (Display Suspension History) will display details of the suspension and the description ‘foreign chq’.
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  * send the cheque and payslip to BancTec using TNT Track and Trace on the day of receipt, entering the EDP (Word 41KB) on the payslip, and if the cheque is post-dated, placing it in an envelope marked ‘Direct taxes post-dated cheque’ inside the polylope.
  * use function RSUS (Record / Amend Suspension) to suspend the full amount collectible for a period of eight days, type ‘5’ or ‘05’.
6. If a company tax payment is acceptable but you are unable to trace the company’s UTR, prepare a payslip showing the pseudo CT reference (Word 33KB).
7. All other sterling cheque payments should be forwarded with accompanying payslip or payslips to BancTec on the day of receipt using TNT Track and Trace.
8. Contact the company to ask them to make future payments electronically.
  You can find further guidance on sending cheque payments to DMB Shipley in the helpcard BA014: Preparing and sending direct taxes cheques for processing.

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Action on receipt of payment in cash

9. Only accept payment in cash in exceptional circumstances, such as:
   
  * in the post
  * on call or in court
  * at the office where it would be clearly unreasonable for the company to take it to a post office or bank.
10. Count the cash payment and enter the details in CBook 23.
11. Place the cash with a payslip in a envelope and seal it in the presence of a supervising officer.
12. Both of you should sign the envelope.
13. Take the payment to a post office yourself no later than the end of the next bank working day with a ‘post office cash only’ slip as the paying-in slip and the case sealed in a post office ‘oddments’ envelope.
14. You must always hold the payment securely in the office until you take the payment to a post office.

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Action on receipt of payment by postal order

15. On receipt of payment by postal order, ensure the order is payable to ‘HMRC’ or similar, such as ‘Collector of taxes’ or ‘HMRC’.
   
16. Treat the payment as if it was a cheque and follow the guidance at steps 7 - 8

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Payment with a condition attached

17. If you receive a ‘payment with conditions attached’, use function VPPD (View Payment and Posting Details) to check the pursuit status.
   
18. If the pursuit status is RFI (Word 31KB), liaise with DMB Banking.
19. If the case is subject to clerical pursuit (Word 28KB) in your office or the pursuit status is ‘auto’, obtain the appropriate authority from the manager or section leader to accept the payment.
20. Write immediately to the company advising that:
  * you have accepted payment ‘without prejudice’
  * the conditions attached to the payment are formally rejected.
  (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

 

     
  21. Process the payment as at steps 7 - 8.