Individual records: BF policy: core principles
This guidance outlines the core principles for creating a BF as a result of working correspondence or reviewing a work item which cannot be completed in its entirety.
When deciding whether to create a BF you must consider that the customer is responsible for keeping adequate records and providing information to ensure their tax affairs are accurate and up to date.
When creating a BF you must always refer to the relevant guidance for the correspondence or work item you are reviewing.
The core principles of the BF Policy are
- You should make full use of all available information with the aim of completing the correspondence or work item at the earliest opportunity
- You should consider whether information can be obtained using Business by Telephone
- You must advise the customer that it is their responsibility to provide any information requested
- You must advise the customer of information requested from a third party and that it remains their responsibility to ensure their tax affairs are accurate and up to date
- You should not create a BF when requesting information for a repayment claim from a customer where you have also advised that it is their responsibility to ensure the information is provided
- You should not routinely create a BF when requesting information for a repayment claim from a third party when you have also advised the customer of the information requested and that it remains their responsibility to ensure their tax affairs are accurate and up to date
- You should not create a BF when the expected underpayment would be below the tolerance. Please refer to PAYE93075 for tolerances
- You must create a BF when there is a clear indication of an underpayment in excess of the tolerance in any individual year. Please refer to PAYE93075 for tolerances
- You must create a BF when information is required to complete the review of a deceased customer record
- You must create a BF when information or action is required from another part of HMRC and you should also advise the customer of the actions taken as appropriate
- You must not manually generate a work item in order to create a BF
- You should create a paper BF in accordance with guidance at PAYE105520 where additional information or follow up action is required to complete a piece of correspondence
Note: The term ‘third party’ includes employers, pension providers and other Government departments.