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HMRC internal manual

Tax Credits Manual

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 13.

Step 1

Note: Cashcheques may have been used as a payment method prior to April 2017, however since April 2017 customers will need to be paid directly into a bank or building society account. Customers will be required to supply us with account details to enable payments to be made.

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

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

If you are working a new work item, go to Step 2.

If you have received a reply to a TC664, go to Step 11.

If you are dealing with an expired BF, go to Step 12.

If the customer has not replied to a TC106, go to Step 13.

Step 2

Use Function VIEW APPLICATION

If the claim is pre-award, go to Step 3.

If the claim is post award, consider any suspicious changes

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

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 hold
  • date the account will start, if applicable. This can be up to 30 days in the future.

If all the information is provided, go to Step 7.

If all the information is not provided, go to Step 4.

Step 4

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

If you are able to contact the customer and obtain the missing bank details, go to Step 7.

If you are able to contact the customer and they are unable to confirm their existing bank details,

  • tell the customer we cannot update their records
  • we will suspend their payments
  • go to Step 6.

Note: For pre-award claims with no bank details held the customer does not need to confirm existing bank details

If you are able to contact the customer and they are unable to provide new bank details, go to Step 5.

If you are unable to contact the customer, go to Step 6.

Step 5

If the claim is post award

  • tell the customer someone will contact them shortly and unless they can provide an alternative we will suspend their payments
  • suspend all payments using Function PAYMENTS. For how to do this use, TCM1000232
  • complete the ‘Informed’ Choice referral from SEES xmls Forms
    Note: Include the date you applied the suspension.
  • use Function MAINTAIN HOUSEHOLD NOTES and select the ‘General’ category and enter the message NC68 from TCM0164020. For how to do this use TCM1000001
  • close the document on DMS, if appropriate. For how to do this, use TCM1000037
  • take no further action.

If the claim is pre award

  • send a referral to the Informed Choice team from SEES xmls Forms
  • use Function AMEND APPLICATION choosing the Correction option and select ‘Sm’ on the toolbar menu. Update Application Notes with the message NC69 from TCM0164020. For how to do this use TCM1000028
  • close the document on DMS, if appropriate. For how to do this, use TCM1000037
  • take no further action.

Step 6

If the claim is post award

  • issue TC664 to the customer selecting the bank details option
  • suspend all payments using Function PAYMENTS. For how to do this use, TCM1000232
  • transfer case from payment suspension worklist to MU249928. For how to do this, use TCM1000023
  • BF the case for 30 days
  • use Function MAINTAIN HOUSEHOLD NOTES and select the ‘General’ category and enter the message ND25 from TCM0164020. For how to do this use TCM1000001

If the claim is pre award

  • issue TC664 to the customer selecting the standard option
  • BF the case for 30 days
  • use Function AMEND APPLICATION choosing the Correction option and select ‘Sm’ on the toolbar menu. Update Application Notes with the message NC83 from TCM0164020. For how to do this use TCM1000028

Step 7

If the change is to a UK bank account, go to Step 8.

If the claim is post award and requires a change to a foreign bank account

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

  • use Function MAINTAIN HOUSEHOLD NOTES and select the ‘General’ category and enter the message NC62 from TCM0164020. For how to do this use TCM1000001
  • close the document on DMS, if appropriate. For how to, use TCM1000037.

If the claim is pre award and requires a change to a foreign bank account

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

  • enter the details of the bank account on the free format screen
  • use Function AMEND APPLICATION choosing the Correction option and select ‘Sm’ on the toolbar menu. Update Application Notes with the message NC62 from TCM0164020. For how to do this use TCM1000028
  • close the document on DMS, if appropriate. For how to, use TCM1000037.

Step 8

Use Function AMEND APPLICATION choosing the Change of Circumstances option

If you are taken to the Applicant Details screen, go to Step 9.

If you are prompted to go to the Free Format screen

  • select [No] on the message to cancel out of Function AMEND APPLICATION
  • use Function AMEND APPLICATION choosing the Correction option. You will be prompted to make the change in Function CAPTURE CURRENT
  • 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: When changing the bank details to an Alliance and Leicester Giro Account, confirm 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, do not overtype the address.
      Note: When the warning message ‘Sort Code is Invalid’ displays, you may have an invalid sort code or an invalid account number, follow the guidance in TCM0314000. This message acts as an error and prevents you from leaving the screen.
  • select ‘Sm’ on the toolbar menu
  • update Application Notes with the message NC61 from TCM0164020. For how to do this use TCM1000028
  • select [OK]
    Note: If the warning message ‘The information captured is incomplete. This application will be rejected’ or ‘The information captured indicates that the application maybe ineligible. This application maybe rejected’. Select [Store].
  • close the document on DMS, if appropriate. For how to do this, use TCM1000037.

Step 9

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: When 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 if applicable. 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 do not overtype the address.
      Note: For start date prior to today’s date and a warning message displays, enter today’s date as the start date.
      Note: When 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, follow the guidance in TCM0314000 before returning to this guidance.
      Note: When you cannot enter the details go to the Appointee screen. The warning message ‘No Bank details Entered’ displays, select [OK] and return to the appropriate Payment Details screen to enter the new account details.
  • select [OK]. You will be taken to 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]
  • go to Step 10.

Step 10

If the message ‘S18 Refinalisation Rules - Potential inappropriate refinalisation for CCYY-CCYY displays

  • the changes you are making will re-finalise the claim, follow the guidance in TCM0042260 before making any changes
  • if you can make the change
    • select [OK] on the message
    • use Function MAINTAIN HOUSEHOLD NOTES and select the ‘General’ category and enter the message NC61 or ND26 from TCM0164020. For how to do this use TCM1000001
    • close the document on DMS, if appropriate. For how to do this, use TCM1000037.

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
  • if you can make the change
    • select [OK] on the message
    • use Function MAINTAIN HOUSEHOLD NOTES and select the ‘General’ category and enter the message NC61 or ND26 from TCM0164020. For how to do this use TCM1000001
    • close the document on DMS, if appropriate. For how to do this, use TCM1000037.

If none of the messages display

  • use Function MAINTAIN HOUSEHOLD NOTES and select the ‘General’ category and enter the message NC61 or ND26 from TCM0164020. For how to do this use TCM1000001
  • close the document on DMS, if appropriate. For how to do this, use TCM1000037.

Step 11

If the claim is post award and customer has provided all the information on TC664

  • check for any payments are suspended. For how to do this, follow the guidance in TCM1000368
  • remove the suspension maker if set. For how to do this, follow the guidance in TCM1000327
  • go to Step 7.

If the claim is pre award and customer has provided all the information on TC664, go to Step 7.

If the customer has not provided all the information on TC664, go to Step 12.

Step 12

Phone the customer to obtain the missing information. Follow the guidance in TCM0094080

If you obtain the missing information, go to Step 7.

If the claim is post award and you cannot obtain the missing information

  • issue TC1016 to the customer
  • use Function MAINTAIN HOUSEHOLD NOTES and select the ‘General’ category and enter the message ND27 from TCM0164020. For how to do this use TCM1000001
  • select the ‘Retained Note’ checkbox
    Note: Use the guidance in TCM0152080 when recording the note and use guidance in TCM0152160.
  • BF case for 10 weeks.

If the claim is pre award and you cannot obtain the missing information

  • use Function AMEND APPLICATION choosing the Correction option. Select the Function CAPTURE CURRENT
  • select [Yes] on the message. You will be taken to the Applicant Details screen
  • select ‘Sm’ on the toolbar menu
  • update Application Notes with the message NC85 from TCM0164020. For how to do this use TCM1000028
  • select [OK]
    Note: When the warning message ‘The information captured is incomplete. This application will be rejected’ or ‘The information captured indicates that the application maybe ineligible. This application maybe rejected’. Select [Store].
  • close the document on DMS, if appropriate. For how to do this, use TCM1000037.

Step 13

Phone the customer to obtain the missing information. Follow the guidance in TCM0094080.

If you obtain the requested information, go to Step 7.

If you cannot obtain the missing information

  • end claim from the date payments were suspended. For how to do follow the guidance in TCM1000222
  • use Function MAINTAIN HOUSEHOLD NOTES and select the ‘General’ category and enter the message ND10 from TCM0164020. For how to do this use TCM1000001
  • select the ‘Retained Note’ checkbox
    Note: Use the guidance in TCM0152080 when recording the note and use guidance in TCM0152160.
  • close the document on DMS, if appropriate. For how to do this, use TCM1000037
  • take no further action.