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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

Claims - work lists (VFs - miscellaneous): Verification Failures - bank accounts - foreign (Info)

Whilst you are dealing with a verification failure, you may

  • notice that the customer has provided details of a foreign bank account on their claim
  • receive a phone call or a letter from a customer requesting you to stop paying their tax credits into their foreign bank account
  • receive form TC687 from Bank Liaison Team informing you that no payments of tax credits have been paid in to the customer’s foreign bank account for a considerable time
  • receive form TC687 from Bank Liaison Team informing you that a payment of tax credits paid in to the customer’s foreign bank account has been rejected.

If you notice that the customer has provided details of a foreign bank account, you must contact the customer to obtain British-based bank or building society account details. If the customer

  • provides British-based account details, you must enter the details on to the computer
  • provides details of a foreign bank account that’s based in a TAPS-compliant (Transcontinental Automated Payment System) country, you must

    • if the claim is in payment, refer the case to a payment operator for them to suspend the payment of tax credits. The payment operator must then refer the case to Bank Liaison Team for them to provide you with the standard sponsor bank account number and sort code that you must enter on to the computer
    • if the claim isn’t in payment, refer the case to Bank Liaison Team for them to provide you with the standard sponsor bank account number and sort code that you must enter on to the computer.

If you receive a phone call or a letter from a customer requesting you to stop paying their tax credits in to their foreign bank account, you must

  • refer the case to Bank Liaison Team for them to contact the sponsor bank to cancel the payments

and, once the Bank Liaison Team have carried out their actions and informed you of this,

  • contact the customer to establish an alternative bank or building society account to pay the tax credits into

then, once the alternative account details are provided

  • enter the details on to the computer.

If you receive form TC687 from Bank Liaison Team informing you that no payments of tax credits have been paid in to the customer’s foreign bank account for a considerable time, you must

  • contact the customer to establish the reason for this

then

  • phone Bank Liaison Team and inform them of the reason.

If you receive form TC687 from Bank Liaison Team informing you that a payment of tax credits paid in to the customer’s foreign bank account has been rejected, you must

  • contact the customer to establish an alternative bank or building society account to pay the tax credits into

then, once the alternative account details are provided

  • enter the details on to the computer.

There is an Action Guide for this subject, select TCM0080060 to access it