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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

Payment - direct payments: Direct payments - wrong payment cancelled (AG)

To deal with an incorrectly-cancelled payment, consider steps 1 to 17.

Step 1

When a payment has been incorrectly cancelled

  • complete the Incorrect payment cancelled form (Word 20KB)
  • keep a copy of the form with any associated paperwork.

Step 2

Complete

  • Part 1 - Your detail

and

  • use Function RECORD APPLICANT FAILED PAYMENT to complete the following details on the form

    • Part 2 - Details of the customer and partner
    • Part 3 - Details of the incorrectly cancelled payment

then

  • copy the form.

Note: Currently it isn’t possible to reverse cancel giros where two or more giros for the same amount are issued on the same day. There is a known system problem with these cases and any incorrectly cancelled giros of this type should be stockpiled until the problem is resolved.

Step 3

If the incorrectly-cancelled payment

  • is a giro, go to .
  • is a BACS payment, go to .

Step 4

Use the Taxpost service and send the original form to Revenue Finance (RF) Worthing (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

then

  • go to .

Step 5

Use the Taxpost service and send the original form to BASS in Telford (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

then

  • go to .

Step 6

Use Function MAINTAIN HOUSEHOLD NOTES and enter the following

‘TCMZ Giro / BACS (note as appropriate) payment made on DD/MM/YYYY for £XXX.XX cancelled incorrectly. Giro / BACS (note as appropriate) payment made on DD/MM/YYYY for £XXX.XX should have been cancelled. Awaiting reverse cancellation. Case referred to RF Worthing / BASS Telford (note as appropriate)’

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

then

  • go to .

Step 7

Store the copied form and any associated papers for three days

Note: This is to enable the reverse cancellation process to be actioned by RF Worthing (and, if appropriate, BASS Telford).

then

  • go to .

Step 8

Use Function VIEW HOUSEHOLD ACCOUNT and go to the View Award Period Postings screen

Note: The reverse cancellation will also update the entry for the cancelled payment in the Applicant Failed Payment work list. The entry will be amended to read ‘Reverse Canc’. However, this work list item may be affected by amendments to the award so you must always check the Payment Postings screen to check if the action has been completed by RF Worthing.

  • If the incorrect cancellation has been reversed the following postings will be visible

    • the original payment out (shown as a minus figure in the ‘Amount’ column - for example, ‘-545.26’)
    • the cancelled payment (shown as a positive figure in the ‘Amount’ column with no minus sign in front of the posting - for example, ‘545.26’)
    • the reverse cancelled payment (shown as a minus figure in the ‘Amount’ column - for example, ‘-545.26’)

    • If the cancellation has been reversed, go to .
    • If the cancellation hasn’t been reversed, go to .

Step 9

If the original incorrectly-cancelled payment was

  • a giro, go to .
  • a BACS payment, go to .

Step 10

It may take up to 14 days to reverse an incorrectly-cancelled BACS payment because BASS needs to trace the PMF (Payments Made Framework) payment reference number in order that RF Worthing can reverse the cancellation

  • If the BACS cancellation hasn’t been reversed and less than ten working days have elapsed since the form was sent to BASS in Telford

    • BF the papers for a further three days
    • continue, every three days, to check if the cancellation has been reversed

    and, when the BACS cancellation has been reversed

    • go to .
  • If the BACS cancellation hasn’t been reversed and more than ten working days have elapsed since the form was sent to BASS in Telford, go to .

Step 11

Phone RF Worthing or BASS

  • RF Worthing

    • for incorrectly-cancelled giros, phone (This content has been withheld because of exemptions in the Freedom of Information Act 2000) and go to .
    • for incorrectly-cancelled BACS payments, phone (This content has been withheld because of exemptions in the Freedom of Information Act 2000) and go to .
  • BASS in Telford

    • phone (This content has been withheld because of exemptions in the Freedom of Information Act 2000) and go to .

Step 12

Explain that an Incorrect Cancelled Payment form has been sent but, as yet, the cancellation hasn’t been reversed. If RF Worthing

  • requests a duplicate form (because they can’t trace the original)

    • take a copy of the form held with the casepapers
    • mark the top of the form ‘Urgent - Duplicate’ in red
    • send the form to RF Worthing by Taxpost as outlined in
    • BF the casepapers for a further three days, before checking if the cancellation has been reversed

    then

    • go to .
  • tells you that the cancellation will be reversed but not immediately

    • ask them how long it will take
    • extend the BF date accordingly
    • BF the casepapers, before checking if the cancellation has been reversed

    then

    • go to .
  • tells you that they haven’t received the form from BASS in Telford, go to .

Step 13

Explain that an Incorrect Cancelled Payment form has been sent but, as yet, the cancellation hasn’t been reversed. If BASS in Telford

  • tells you they need more time to complete their action

    • ask them how long it will take
    • extend the BF date accordingly
    • BF the casepapers, before checking if the cancellation has been reversed

    then

    • go to .
  • tells you that they never received the form

    • take a copy of the form held with the casepapers
    • mark the top of the form ‘Urgent - Duplicate’ in red
    • send to BASS in Telford by Taxpost as outlined in
    • BF the casepapers for a further three days, before checking if the cancellation has been reversed

    then

    • go to .
  • tells you that they have sent the form to RF Worthing, go to and contact RF Worthing.

Step 14

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

  • give them the details of the incorrectly-cancelled BACS payment
  • ask them to send a duplicate referral to RF Worthing for this case

then

  • go to .

Step 15

Continue to BF the paperwork until the cancellation is reversed

  • when the BF date has expired, go to to check if the cancellation has been reversed

then, when the cancellation is reversed

  • go to .

Step 16

Use Function RECORD APPLICANT FAILED PAYMENT and go to the Record Applicant Failed Payment screen

  • select the correct payment
  • select the appropriate reason to cancel the payment in the Cancel Reason field. You’ll be returned to the Record Applicant Failed Payment screen
  • in the Record Applicant Failed Payment screen reissue the payment, if appropriate
  • select [OK]
  • select [Cancel] twice to exit this screen

then

  • go to .

Step 17

Send any papers that you hold to storage. Follow the guidance in TCM0074140.