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HMRC internal manual

Debt Management and Banking Manual

Payment Allocation, Overpayments and Repayments: Obtaining a credit to reconcile an accounting record: Repayment in error - DRIER

BackgroundA repayment may be made in error when

  • a payment is incorrectly allocated to the record of another customer
  • a repayment is issued from the wrong customer record
  • a repayment is issued to the wrong payee
  • a larger than expected repayment is issued to a customerIn these cases where it is too late to cancel the repayment because

  • the payable order has been cashed
  • the repayment was issued by BACS/CHAPS
  • an incorrectly allocated payment is inaccessiblea credit may be required to reconcile the record of the correct customer.

DRIER Where the repayment in error cannot be recovered through amendment to the relevant records or because the incorrect payee has not returned the repayment voluntarily it may be necessary to raise a DRIER (R97) charge on SAFE. See

DMBM215000for further details.

Note: It is not necessary to wait until the repayment in error is being formally recovered before making a request for a credit. The request for a credit should be made as soon as it is evident that a credit is required. A credit should be requested irrespective of whether the mistake resulting in the error was that of the customer, agent orHMRC.

Requesting a creditSend details of the case to AET, Cumbernauld. Head the application ‘Credit request – Repayment made in error’ and provide

  • the customer’s name
  • reference of charge requiring a credit if appropriate
  • amount of credit required
  • an explanation why the credit is required
  • the SAFE reference of the related DRIER charge or confirmation that a DRIER charge is not appropriate.If there are no charges for the customer against which the credit can be allocated provide sufficient details to enable the credit to be repaid

Action on Accounting Error TeamExamine the case. If a credit is appropriate prepare a memo for the Repayment Section, Cumbernauld, providing details for completion of the payable order showing either repayment details to the customer or payable to HMRC for allocation.

SA cases The credit will be sent direct to the SA record of the correct customer and allocated automatically to any outstanding SA charges.

Where there are no outstanding charges the credit will be available as an overpayment on the SA record. If appropriate it can then be repaid in accordance with any repayment request made by the correct customer.

When the credit is received on the SA record, the processing office must make an appropriate entry in SA NOTES.

Note: when reissuing the repayment from the SA record it is important to ensure the bank details being used have been confirmed as correct with the customer.

Non SA cases Where credit is to be allocated against an outstanding charge

  • B/F for receipt of the credit notification
  • make a suitable note on the historical record.