Time To Pay: partnership Time To Pay requests: payment methods
When partnership arrangements are agreed the partnership must agree to make regular payments at regular intervals and they must clearly specify how payments made are going to be allocated to individual partners. Where this cannot be agreed the partners’ individual debts will have to be managed separately.
Our preferred method of payment for partnership arrangements is by direct debit.
Payment from a single partnership bank account
Where payment is going to be made from a single account held by the partnership then you will need to issue a Direct Debit Instruction (DDI) to the person(s) who is/are authorised to set up direct debits from the nominated bank account (see NDDUG6200). A single direct debit mandate can be used to set up to 99 payment plans from one account.
When you send a DDI out you must also enclose a TTP70 SEES letter.
When the completed DDI form is sent back you will need to set up separate payment plans to make payment to the individual partners’ records. When setting up the arrangement on NDDS make sure that you create the DDI instructions using the Partnership UTR, and that the address used is that supplied on the DDI. This will ensure that payment schedules and other correspondence goes to the account holder’s address. You must enter the partnership UTR in the ‘Search Display Customer Details’ screen (see NDDS002). You should then enter the DDI details (see NDDS003). Using that DDI you must create a separate TTP arrangement for each partner. When you set up each TTP you must take care to enter the individual partner’s SA UTR (see NDDS005). This will ensure that payments are allocated to the correct partner. You will need to set up separate arrangements for each partner in line with NDDUG2000.
Direct debit payments from individual partner’s accounts
Exceptionally each partner may choose to make payment by direct debit from their individual bank account. Where possible we normally set up individual direct debit payments over the phone, but in cases involving lots of partners this will be very time consuming. Where contacting each partner over the telephone is not practical you will need to issue a DDI to each partner (see NDDUG6200). Where you issue the DDI to the customer you should include the SEES TTP60 letter with the form.
Upon receipt of the form you should follow the instructions on helpcards NDDS002, NDDS003 and NDDS005.
Other methods of payment
Where payment is not being made by direct debit and the partnership wishes to make a single cheque payment then they must send in accompanying payslip for each individual partner detailing how the payment is to be allocated among the partners.
If the customer wishes to pay by another method e.g. BACS then they must make sure that the correct payments are made at the correct time quoting the correct reference numbers. Where the individual partners want to make their own separate payments then they should be encouraged to pay electronically.