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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
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Payment - direct payments: Direct payments - no account (Info)

The computer will pay tax credits into any bank account, building society account or Post Office® card account (POca) that will accept BACS and has been authorised by the customer.

The account can be in the name of a third party but, if there’s a query, you must only deal with the customer, not the account holder.

If there are exceptional circumstances that result in a customer not being able to obtain a bank account, building society account or POca, contact the Informed Choice Team. If, by the end of the relevant period (use TCM0212200), the customer hasn’t provided any bank account, building society account or POca details, the customer will cease to be entitled to tax credits for the remainder of the award period.

If the customer subsequently provides bank account or building society account details, they’ll be entitled to tax credits for a period of up to three months prior to the date on which they notified you of their bank account or building society account details.

The customer will also be entitled to tax credits for the remaining period of their entitlement.

If the customer is able to open an account but they need longer than the relevant period to provide you with bank account, building society account or POca details, the time in which the customer can provide you with the details will be extended. Reasons that can be accepted for this are

  • the customer has been ill, been abroad or has passed from one type of account to another
  • the customer has requested to open a POca but they haven’t yet activated it.