Payments: processing payments: receipts and correspondence
To reduce costs, HMRC does not issue a receipt for each payment made. The specific circumstances when a receipt must be issued are:
- when the company or agent specifically requests one
- for all payments made by cash or postal order.
When a receipt is to be issued:
- DMB Banking enters a signal on the payslip to prompt COTAX to print a receipt
- the Debt Management Office provides an official receipt form as in Collection Manual 5.201
- the CT responsible office normally provides a signed letter containing details of the payment.
When COTAX has produced a receipt for payment, an ‘R’ is shown in the notes column in function VPPD (Function View Payment and Posting Details) screen D.
If a receipt is requested after the payment has been processed:
- DMB Banking issues a letter confirming receipt of the payment
- The Debt Management Office issues a Certificate of Payment as in Collection Manual 8.701.
If all addresses held for a company are ‘RLS’, COTAX does not print a receipt for payment. Where, exceptionally, a COTAX produced receipt is returned undelivered by Royal Mail, it is retained in a security press in DMB Banking until a new address is traced. If a new address is not found within 12 months, the receipt may be destroyed.
See COM90071 for a list of functions to use in particular situations.