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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

Changes: payments: bank or building society account change /payment frequency (AG)

To deal with a change of bank or building society account details, consider steps 1 to 15.

Step 1

Note: When dealing with any changes to bank or building society account details, you mustn’t contact the customer or apply any of the changes until you have determined if there is any Compliance activity.

Note: If the customer is requesting a change to payment frequency and more than one change to payment frequency has been made in a 12 month period or household notes show NC61 (changed pay frequency in the last 12 months), NC65 (changed pay frequency citing financial hardship) or NC66 (been advised to write in to make changes) send the case to the Risky Change of Circumstances Team.

Note: A change in legislation in Jan 2011 allows TCO the discretion not to allow a change under suspicious circumstances but this is not stopping all changes. If the customer has made one change but the customer claims financial hardship the change will be allowed however the customer is informed that we are unlikely to allow a further change. If a further change is required by the customer they will be advised to write in.

Before you continue with this Action Guide, follow the guidance in TCM0138020. If you can continue to process the change and

  • you are dealing with a returned form TC664, go to  
  • you are dealing with an expired action date and you can’t obtain the missing information after following the normal reminder cycle, go to  

otherwise

  • go to .

Step 2

Use Function VIEW APPLICATION

  • If the claim is pre-award, go to .
  • If the claim is post award, select the All checkbox on the Key Entry Data screen to view all the changes to the claim. Using the information about the changes that have already been made and the change to the bank details you are dealing with now, consider if the change is suspicious. (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)
    • (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)
    • (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) (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)

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

    • If

    • you consider the change is suspicious, go to  
    • the payment is suspended. Follow the guidance TCM0212220 

    otherwise

    • go to .

Step 3

Check that all the following information has been provided for the new and, if applicable, old bank details

  • sort code
  • account number
  • building society reference number, if applicable
  • name of the account holder
  • date the account will start. This can be up to 30 days in the future

then

  • go to .

Step 4

Phone the customer to confirm the change. Follow the guidance in TCM0094080.

  • If you are able to contact the customer by phone

    • tell the customer you are working on a team whose job it is to confirm whether we hold the most up-to-date details for customers
    • If the customer is already being paid through a bank or building society account, ask the customer to confirm their current bank or building society details held on the computer

    • If the customer doesn’t wish to disclose any information about their bank details or is unable to confirm their current bank or building society details held on the computer, advise them to contact the Tax Credits Helpline who will be able to make the change

    then

    • go to .
    • If the customer confirms their current bank or building society details or they aren’t already being paid through a bank or building society, then
    • If the customer tells you they have asked for their bank details to be updated, confirm this with the customer
    • ask the customer if they also want us to update their Child Benefit bank account details
    • tell the customer

    • we will update their records with their new bank details
    • due to the processing time involved in issuing payments, their next payment may not go into their new account
    • they should contact the bank and check both the old and new account to see if the payment has been made before phoning back to report a missing payment.

    • and
    • ask the customer for any missing bank details
    • If the customer doesn’t have a bank or building society account for us to pay their tax credits into, tell them they will need to open one. Until new account details are received their payments will be made by cashcheque
    • then
    • go to .
  • If you are unable to contact the customer by phone

    • send form TC664 (option 2) to the customer requesting the following information for the new and, if applicable old bank details

    • sort code
    • account number
    • building society reference number, if applicable
    • name of the account holder
    • date the account will start. This can be up to 30 days in the future

    then

    • go to .

Step 5

If

  • you have contacted the customer

    • by phone or in writing to confirm or obtain any missing information for their new bank details, go to .
    • by phone but the customer hasn’t requested a change to their bank details, go to .
    • in writing but the customer hasn’t told you about their new bank details, go to .
  • you are dealing with a change from a personal acting body and

    • there is no missing information, go to .
    • there is missing information, phone the personal acting body to obtain the missing information and to ask them if the customer also wants you to update their Child Benefit bank details. Follow the guidance in TCM0094080.

    • If you obtain the missing information, go to .
    • If you are unable to contact the personal acting body by phone, send form TC664 for the details listed earlier in this guidance. If necessary, follow the normal reminder cycle and then go to .

Step 6

If the change is to a

  • UK bank account, go to .
  • foreign bank account

    • (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)
    • (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)

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

    • go to .

Step 7

Use Function AMEND APPLICATION choosing the Change of Circumstances option.

  • If you are taken to the Applicant Details screen, go to .
  • If you are prompted to go to the Free Format screen, go to .

Step 8

Select [No] on the message to cancel out of Function AMEND APPLICATION. Is the change a future dated change?

  • yes, file in a clerical BF until the date of the change.
  • no

    • use Function AMEND APPLICATION choosing the Correction option. You will be prompted to make the change in Function CAPTURE APPLICATION
    • select [Yes] on the message. You will be taken to the Applicant Details screen
    • select ‘PM1’ or ‘PM2’ on the toolbar menu, as appropriate for customer 1 or customer 2. You will be taken to the Payment Details screen

    Note: If you are changing the bank details to an Alliance and Leicester Giro Account, confirm you have the correct sort code and account number. Follow the guidance for ‘Alliance’ or ‘Alliance & Leicester Giro’ or ‘Giro’ in TCM0314000.

    • enter the following details

    • account number
    • sort code
    • building society reference number, if applicable

    Note: You must tab out of the Sort Code field to validate the account. The Bank Wizard will automatically populate the Bank Address field. Once this field has been populated don’t overtype the address.

    • If the bank details displayed are

    • incorrect, check and amend the bank account and sort code
    • invalid, follow the guidance in TCM0314000 

    Note: If the warning message ‘Sort Code is Invalid’ displays, you may have an invalid sort code or an invalid account number. This message acts as an error and prevents you from leaving the screen.

    or

    • they have changed for both customers in a joint claim

    • select ‘PM1’ or ‘PM2’ on the toolbar menu. Repeat this action and the action below for both customers in a joint claim
    • select [Delete] to clear the screen

    then, when you have completed your entries

    • select ‘Sm’ on the toolbar menu. You will be taken to the Summary Information screen
    • go to .

Step 9

On the Summary Information screen

  • Enter the following in the Application Notes field

‘NC61 - COC bank details updated (letter/tel) recd (DD/MM/YY) from (source)’

Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152040.

  • select [OK]

    • If either of the following messages display

    ‘The information captured is incomplete. This application will be rejected’

    ‘The information captured indicates that the application maybe ineligible. This application maybe rejected’

    • select [Store]

    then

    • go to .

    • If neither message displays, go to .

Step 10

On the Applicant Details screen

  • select ‘PM1’ or ‘PM2’ on the toolbar menu, as appropriate for customer 1 or customer 2. You will be taken to the Payment Details screen

Note: If the bank details are being changed to an Alliance and Leicester Giro Account, confirm you have the correct sort code and account number. Follow the guidance for ‘Alliance’ or ‘Alliance & Leicester Giro’ or ‘Giro’ in TCM0314000.

  • select [Delete] to clear the screen
  • enter the following details

    • account number
    • sort code
    • account name
    • building society reference number, if applicable
    • start date. This can be up to 30 days in the future.

    Note: You must tab out of the Sort Code field to validate the account. The Bank Wizard will automatically populate the Bank Address field. Once this field has been populated don’t overtype the address.

    Note: If the start date is prior to today’s date and a warning message displays, enter today’s date as the start date.

  • If the bank details are

    • incorrect, check and amend the bank account and sort code
    • invalid, follow the guidance in TCM0314000.

    Note: If the warning message ‘Sort Code is Invalid’ displays, you may have an invalid sort code or an invalid account number. This message acts as an error and prevents you from leaving the screen.

  • If the account details have changed for both customers in a joint claim, change the details for the other customer

    • select ‘PM1’ or ‘PM2’ on the toolbar menu, as appropriate. You will be taken to the Payment Details screen
    • select [Delete] to clear the screen
    • enter the new account details for the other customer

    Note: If you can’ enter the details go to the Appointee screen. When the warning message ‘No Bank details Entered’ displays, select [OK] and then return to the appropriate Payment Details screen to enter the new account details.

  • select [OK]. You will be taken to the Amend Finish screen
  • go to .

Step 11

On the Amend Finish screen

  • enter the date the notification of the change was received
  • select the relevant source, for example, ‘Paper’ from the Source drop down menu
  • enter the reason for the change as ‘Designatory’
  • select [OK]

    • If the message ‘S18 Refinalisation Rules - Potential inappropriate refinalisation for CCYY-CCYY. If you have the authority to re-finalise under S19, S20 or S21 of the Tax Credit Act 2002 or due to an appeal decision. Press OK to process the change or Cancel’ displays

    • the changes you are making will re-finalise the claim, follow the guidance in TCM0042260 before making any changes

    then, if you can make the change

    • select [OK] on the message
    • go to .

    • If the message ‘S18 Refinalisation Rules - Actual Income for CCYY-CCYY is required. This change will not be accepted’ displays

    • you will not be able to make the change because the PY actual income is required, follow the guidance in TCM0042260 before making any changes

    then, if you can make the change

    • select [OK] on the message
    • go to .

    • If the message ‘S18 Refinalisation Rules - You do not have the authority to re-finalise CCYY-CCYY. This change will not be accepted. Please refer to the appropriate team’ displays

    • the changes you are making will re-finalise the claim
    • select [Cancel]. You will be taken to the Amend Application Details screen
    • select [Cancel]
    • when the message ‘All changes to the application will be lost for this session, do you wish to proceed?’ displays, select [Yes]
    • pass the case to a Level 2 User or your manager. For more information, use ‘Level 1 and Level 2 users’ on TCM0320260 
    • take no further action.

    • If none of the messages display, go to .

Step 12

Use Function MAINTAIN HOUSEHOLD NOTES and select the ‘General’ category to record the following appropriate message

  • Step 1 - ‘NC85 - CoC (insert area of change) unable to action as (Form number or letter) not returned. Reminder cycle expired. Case sent to storage’
  • Step 4 - ‘NC66 - CoC Clmt cannot provide bank info. Clmt to contact helpline / reply sent / phoned (clmt1/2) (DD/MM/YY and time)’
  • Step 4 - ‘NC83 - COC corre re (details), further info needed. UTC X 2. Letter (details) issued to (details). BF (DD/MM/YY). Corre rec (DD/MM/YY) from (source)’
  • Step 5 - ‘NC83 - COC corre re (details), further info needed. UTC X 2. Letter (details) issued to (details). BF (DD/MM/YY). Corre rec (DD/MM/YY) from (source)’
  • Step 6 - ‘NC62 - CoC Letter recd (DD/MM/YY) bank details confirmed with clmt (DD/MM/YY) and refd to Bank Liaison team’
  • Step 11 - ‘NC61 - COC bank details updated (letter/tel) recd (DD/MM/YY) from (source)’

Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152160.

then

* If you have just issued form TC664, take no further action.
* If you have applied the change and the customer wishes their Child Benefit record to be updated, go to .
* If you have applied the change and the customer doesn’t wish their Child Benefit record to be updated, got to .
* If you couldn’t obtain the missing information after following the normal reminder cycle, go to .
* If you are unable to confirm the customer’s current bank details, go to .

Step 13

If you

  • have access to the Child Benefit computer

    • make the change on the Child Benefit computer. Follow the relevant Child Benefit guidance

    then

    • go to .
  • don’t have access to the Child Benefit computer

    • complete form TC648 with the following details

    • sort code
    • account number
    • building society reference number, if applicable
    • name of the account holder
    • date the change will take effect
    • old account details

    • save the form on your desktop
    • from the Start menu open a freehand E-form WAM referral
    • enter the customer’s surname in both Taxpayer fields
    • select ‘Other’ in both Work Area fields
    • enter the customer’s NINO in both NINO fields
    • select [Attachment] on the E-form
    • in the Add Attachment box, select ‘Look In’ [Desktop]
    • select form TC648 on your desktop
    • select [Open]. The attachment will appear on the E-form template
    • select [To] on the E-form template
    • select either of the ‘Child Benefit Office - WAM’(s) from the Office WAM box. Don’t select the ‘Child Benefit Office NI - WAM’
    • select [OK]
    • select [Send]. The WAM referral will be sent to CBO
    • delete form TC648 from your desktop

    then

    • go to .

Step 14

Email the (This content has been withheld because of exemptions in the Freedom of Information Act 2000) referral to the nominated (This content has been withheld because of exemptions in the Freedom of Information Act 2000) team with the following information

  • title (This content has been withheld because of exemptions in the Freedom of Information Act 2000)  
  • date of the phone call
  • adviser’s name
  • customer’s name
  • customer’s NINO
  • customer’s phone number
  • customer’s address and postcode
  • details of all the requested changes

and then, if you are working in

* Belfast, Liverpool and Preston send (This content has been withheld because of exemptions in the Freedom of Information Act 2000)  
* Washington and Newcastle send (This content has been withheld because of exemptions in the Freedom of Information Act 2000)  

then

  • use Function MAINTAIN HOUSEHOLD NOTES and select the ‘General’ category to record the following

‘NC65 - CoC Letter recd (DD/MM/YY) bank details (DD/MM/YY) **SUSPECTED HIJACK REFERRAL SENT**’

Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152160.

  • go to .

Step 15

Send any correspondence to storage. Follow the guidance in TCM0074140.