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HMRC internal manual

Self Assessment Manual

Records: maintain taxpayer record: budget payment plan signal

The Budget Plan Payment (BPP) signal indicates whether or not a taxpayer has set up a payment plan to pay their SA liabilities by direct debit.

Where the signal is set to ‘Y’, this indicates that a payment plan has been set up and if the signal is set to the default setting of ‘N’, there is no payment plan in place.

The signal is set or unset clerically using SA function AMEND TAXPAYER SIGNALS.

From October 2008 the BPP signal is linked to the National Direct Debit System (NDDS), which means that the BPP signal can be set or unset automatically where an NDDS operator has set up a new payment plan or has cancelled an existing payment plan. This does not affect the facility for local offices to set or unset the BPP signal clerically where necessary.

Also from October 2008 the BPP signal has been activated in SA as a reason for automatic repayment inhibition. This means that where the BPP signal is set to ‘Y’ either clerically or automatically, the automatic creation of a repayment will be inhibited and a work item created on the W030 ‘Inhibited Automatic Repayments’ work list for review (SAM113010). This will avoid any payments made under a direct debit payment plan intended for SA liabilities becoming due in the future being repaid to the taxpayer in error.