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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
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Debt and return pursuit: VAT: deregistered customers and revenue losses: further action after write-off (FRAWO)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Accounting for a payment received after write-off

DMBM200100 lists the various ways that payment can be made. HMRC prefers electronic payments because they are cheaper, quicker, more secure and the customer records are swiftly updated.

VAT

If you receive a payment for VAT that was not made electronically

  • send it to Banking, Shipley clearly marked in red ‘Further Recovery After Write-Off’.

Banking will

  • allocate it to the customer’s VAT account
  • use account code 33829 as a FRAWO.

Accounting and Adjustments will automatically be notified of payments or VAT returns that are input to the VAT Mainframe after write-off and FRAWO action will be taken if appropriate.

All other indirect taxes

If you receive a payment that was not made electronically for an indirect tax other than VAT send it to Banking who will allocate it to

  • account code 33980 for Excise
  • account code 33128 for New Taxes
  • account code 33981 for Customs Duties.

Reporting FRAWO

Information on FRAWO is automatically available to the Performance and Resources Team at Worthing through CECAS so that it can be included in the Trust Statement.