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HMRC internal manual

PAYE Manual

From
HM Revenue & Customs
Updated
, see all updates

Employer returns: employer payments: payments received in processing offices

This subject is presented as follows

 

Payments general

An employer or contractor may send a payment to the responsible processing office attached to correspondence or with their returns. This could include any of the following

  • Tax including Class1 / 1A and Class 4 NIC
  • NIC Class 2 and / or Class 3
  • Student Loan Deductions
  • Debts in respect of tax credits

All payments must be dealt with on the day of receipt and extra care should be taken when handling cash payments. All cash payments and payments received in the post by either Registered / Recorded / Special Delivery or Special Remittances must be entered into the Book 23.

From 3 March 2006 cash payments will not normally be handled in processing offices. Customers should be directed to take their payment to a Post Office or pay at their own bank branch. You should check that the customer has the appropriate payslip to accompany the payment.

You can suggest to payers that there are other options, which include

  • Paying in cash at the Post Office. Use the Print Payslip (PP) application to provide the employer with a printed payslip to use, if one is not already held
  • Payment by electronic funds transfer, for example

    • Bacs Direct Credit
    • Faster Payments online or telephone banking
    • CHAPS

    Or

    • Over the counter at a bank or Bank Giro or at a Post Office

Copies of payment fact sheets that describe the various other ways in which payments can be made are available on the DMB Guidance Gateway under Helpcards > Paying Electronically Customer Helpsheets. You should print these locally and hand a copy to each cash-paying taxpayer.

E-mail DMB Banking 2 Technical and Guidance for advice on any queries you are unable to handle.

Cheque payments

Cheque payments for Child Benefit, NIC&EO, tax credit debts and tax or tax / NIC combined are all dealt with by DMB Banking Shipley.

Cash payments

From 3 March 2006 cash payments will not normally be handled in Processing Offices. Customers should be directed to take their payment to a Post Office or pay at their own bank branch. You should check that the customer has the appropriate payslip to accompany the payment.

Missing payments

You may have received correspondence suggesting that a payment is enclosed. This could be

  • A completed payslip on its own
  • A letter containing a reference to a payment but no payment is enclosed
  • A request for a receipt but no payment is enclosed

You must make urgent contact with the employer to locate any missing payment.

Tax payments to DMB Banking Shipley

When you receive a payment of tax including Class 1 / 1A and Class 4 NIC you should

  • Prepare a pro-forma payslip using the Print Payslip (PP) application

And

  • Transmit the payment to DMB Banking Shipley using TNT Track and Trace

NIC&EO payments

Payment by cheque of Class 2 or Class 3 NIC should be directed to DMB Banking Shipley using TNT Track and Trace for them to bank. If a payer proposes to make a combined Tax and Class 2 and / or a Class 3 NIC payment by cheque you should ask the payer for 2 separate cheques if possible.

Where there is a cash payment or a combined payment (cash or cheque) you must

  • Not refuse the payment

And

  • Follow the guidance contained in this subject about sending cheque payments to DMB Banking Shipley

Tax Credit debts

Payment by cheque or postal order for a tax credit debt must be sent to DMB Banking Shipley using TNT Track and Trace.

Where the payment is in cash you should not refuse the payment but you must follow the appropriate guidance contained in this section.

Voluntary arrangements

HMRC Finance has arranged for an indemnity to be put in place with the banks which will allow us to accept cheques made payable to HM Customs & Excise. You must only bank these cheques if there is a Revenue debt.

Security measures

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