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HMRC internal manual

Tax Credits Manual

Payment - returned or not received: Cashcheque returned (AG)

To deal with returned cashcheque, consider steps 1 to 13.

Step 1

Before you continue with the guidance in this Action Guide, follow the guidance in TCM0138020

then, if you can process the claim

  • read the correspondence and examine the front and back of the cashcheque to determine the reason why the cashcheque has been returned
  • use Function VIEW HOUSEHOLD NOTES to check for any relevant notes - for example, to check if there’s an entry to indicate a change of address has been captured since the cashcheque was issued
  • check NTC to see if bank account details are held

If NTC shows bank account details are held, go to Step 2.

If NTC shows bank account details are not held

  • claims no longer in payment make a note to pay by payable order
  • claims showing payments are suspended due to no bank account details held make a note to pay by payable order
  • consider anyhousehold note to say customer is eligible to receive non bank payments make a note to pay by manual off system payment
  • go to Step 2.

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Step 2

Use Function VIEW HOUSEHOLD ACCOUNT and go to the View Award Period Postings screen to check the details on the cashcheque against the details held on the computer

  • If you receive the ‘You are not authorised’ message, refer the case to the Secure Management Unit (SMU) to deal with the referral. Follow the guidance in TCM0068160.
    Note: When sending customer, staff or process data to another individual or team, make sure you follow the latest data security guidelines or contact the Data Guardian or Data Security Team for advice.
  • If you receive the message ‘No match found’, go to Step 9.
    Note: You must check the postings screens for all award years to try to find the posting.
  • If the cashcheque is for a backdating payment or WTC Run On payment, it won’t be posted onto the tax credits computer system, go to Step 3.
  • If the posting can’t be found in View Award Period Postings screen, go to Step 10.
  • If any other circumstances apply, go to Step 3.

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Step 3

If the cashcheque is

  • damaged, out-of-date, or sent to reduce an overpayment
    • cancel and re-issue the payment, considering manual payment if appropriate, follow the guidance in TCM0212080, return to this guidance and go to Step 11.
  • found after being reported lost, check Household Notes for a message stating the payment has already been cancelled and reissued
    • if the payment has already been cancelled and reissued, go to Step 11.
    • if the payment hasn’t already been cancelled and reissued, cancel and re-issue the payment. Follow the guidance in TCM0212080, then return to this guidance and go to Step 11.
  • RLS, go to Step 4.
  • for a backdating payment or WTC Run On payment, go to Step 5.
  • for a change of circumstances, go to Step 6.
  • for payments issued to a deceased customer, go to Step 7.
  • returned by the Post Office, go to Step 8.
  • no trace, refer case to your TALLO, go to Step 9.
  • none of these options, refer case to your TALLO, go to Step 9.

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Step 4

For RLS cases, check if a new address has been captured since the cashcheque was issued. To do this

  • use Function VIEW APPLICATION to compare the address details on the returned cashcheque with those shown in Applicant Details screen

If there is a new address

  • cancel and re-issue the payment, considering manual payment if appropriate. Follow the guidance in TCM0212080, and then return to this guidance and continue with this step
  • check if the RLS marker is unset. If it isn’t, unset the marker using Function AMEND APPLICATION in the Household Details screen then go to Step 11.

If there isn’t a new address

  • use Function AMEND APPLICATION, choosing the Correction option and go to the Address Changes screen to set the RLS marker
  • cancel and reissue the payment. Follow the guidance in TCM0212080, and then return to this guidance and go to Step 11.
    Note: Don’t reissue a manual payment.

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Step 5

If the cashcheque is for a backdating payment or WTC Run On payment

Note: Backdating and WTC Run On payments won’t be posted onto the tax credits computer.

  • use Function HOUSEHOLD NOTES to check if the payment has already been replaced

If the payment has already been replaced, go to Step 11.

If the payment hasn’t been replaced

  • re-issue the payment. Follow the guidance in TCM0212080, and then return to this guidance
  • go to Step 11.

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Step 6

If the customer has reported a change of circumstances

  • use Function VIEW HOUSEHOLD NOTES to check if the change has been actioned
  • Use Function VIEW APPLICATION to check for changes recently made
  • select the latest application version. This will take you to the Application Summary screen
  • select VH (Version History). This will take you to Applicant 1 screen
    Note: If the cashcheque is addressed to Applicant 2 you need to select continue and this will take you to the Applicant 2 screen.

If it has been actioned

  • cancel and reissue the payment, considering manual payment, if appropriate. Follow the guidance in TCM0212080, and then return to this guidance 
  • go to Step 11.

If it hasn’t been actioned and the only change that hasn’t been actioned is a change of address and you have the change in writing from the customer

  • change the address on the system, following the guidance in TCM0036020 
  • cancel and reissue the payment, considering manual payment, if appropriate. Follow the guidance in TCM0212080, and return to this guidance
  • go to Step 11.

If it hasn’t been actioned and any other circumstances apply

  • cancel, but don’t reissue the payment. Follow the guidance in TCM0212080 and then return to this guidance
  • send the correspondence to the Change of Circumstances team with a completed form TC648
    Note: When sending customer, staff or process data to another individual or team, make sure you follow the latest data security guidelines or contact the Data Guardian or Data Security Team for advice.
  • go to Step 11.

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Step 7

Use Function VIEW HOUSEHOLD NOTES to check if the claim is being dealt with by the Priority 1 team.

Note: If the message starts ‘NP05’, ‘NP07’ or ‘NP08’, this is a Priority 1 case.

If the Priority 1 team is dealing with the case

  • cancel the cashcheque, following the guidance in TCM0212060, but don’t re-issue, return to this guidance
  • go to Step 11.

If the Priority 1 team isn’t dealing with the case

  • follow the guidance in TCM0040100 
  • cancel the cashcheque, following the guidance in TCM0212060, but don’t re-issue, then return to this guidance 
  • go to Step 11.

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Step 8

If the cashcheque has been returned by Royal Mail

  • send the cashcheque and any correspondence with a completed form TC648 (This content has been withheld because of exemptions in the Freedom of Information Act 2000)  
    Note: When sending customer, staff or process data to another individual or team, make sure you follow the latest data security guidelines or contact the Data Guardian or Data Security Team for advice.
  • go to Step 11.

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Step 9

If

  • you receive the error message ‘No match found’
    or
  • the case doesn’t match with any other options
    • refer to your TALLO for advice on what action to take
    • BF the case in the ‘No match’ BF until further advice is received
      then, once advice is received
    • continue with this guidance.

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Step 10

If the posting can’t be found

  • complete the Posting Spreadsheet of Returned Giros with the relevant details
  • forward the spreadsheet to your team contact, who will send the details to RF Worthing on a weekly basis
    then
  • return to Step 3 of this guidance to consider re-issuing the payment
  • then, when you’re notified by RF Worthing that the cashcheque has been posted
  • return to Step 3 of this guidance to cancel the payment.

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Step 11

Use Function MAINTAIN HOUSEHOLD NOTES to enter one of the following

  • ‘PT01 - Cashcheque dated DD/MM/YY £ (xxxx) serial number (xxxxx) returned (reason). Cancelled and/or reprofiled (as applicable)’
  • ‘PT02 - Cashcheque dated DD/MM/YY £ (xxxx) original R92 number (xxxx) returned (reason). Cancelled and replacement requested to (Mr/Mrs….) for £(xxxx) CTC/WTC. Ref’d to Group 13’
  • ‘PT03 - Cashcheque dated DD/MM/YY £ (xxxx) serial number (xxxx) returned (reason). Already cancelled and reprofiled - H/H note DD/MM/YY refers. No further action’
  • ‘PT04 - Cashcheque dated DD/MM/YY £ (xxxx) serial number (xxxx) returned RLS. No new address supplied, RLS marker set. Payment cancelled and reprofiled and will be reissued when new address is supplied and updated on system’
  • ‘PT05 - Cashcheque dated DD/MM/YY £ (xxxx) original R92 number (xxxx) returned RLS. No new address supplied, RLS marker set. Payment cancelled - please advise cust to write in to request replacement when new address is supplied’
  • ‘PT06 - Cashcheque dated DD/MM/YY £ (xxxx) original R92 number (xxxx) not cancelled as not posted. Replacement payment requested to (Mr/Mrs…..) for £ (xxxx) CTC/WTC. Ref’d to Group 13’
  • ‘PT07 - Cashcheque dated DD/MM/YY £ (xxxx) serial number (xxxx) returned with a change of circs (enter details of change reported). Change already actioned, payment cancelled and reprofiled’
  • ‘PT08 - Cashcheque dated DD/MM/YY £ (xxxx) serial number (xxxx) returned with a change of circs (enter details of change reported). TC648 sent to Change of Circs team, payment cancelled only, will be reprofiled when change actioned’
  • ‘PT09 - Cashcheque dated DD/MM/YY £ (xxxx) serial number (xxxx) returned as ap1/ap2 deceased. Payment cancelled, TC648 sent to Priority 1 team’
  • ‘PT10 - Cashcheque dated DD/MM/YY £ (xxx) serial number (xxxx) returned by Post Office. Sent to Compliance CLI (FR) Room WP1204 Tel 0191 22 51378’
  • ‘PT11 - Cashcheque dated DD/MM/YY £ (xxxx) original R92 number (xxxx) referred to Finance (Worthing) via spreadsheet to be posted on NTC system. Already replaced, to be cancelled when posted’
  • ‘PT12 - Cashcheque dated DD/MM/YY £ (xxxx) original R92 number (xxxx) now posted and cancelled on NTC system. NFA’
  • ‘PT13 - Cashcheque dated DD/MM/YY £ (xxxx) original R92 number (xxxx) cannot be posted onto NTC system. Already replaced, NFA’
    Note: You must follow the guidance in TCM0152060 when you record the note and also follow the guidance in TCM0152160.
  • go to Step 12.

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Step 12

Photocopy the returned cashcheques and send the original cashcheques to RF Worthing, using Taxpost Direct, on a weekly basis (This content has been withheld because of exemptions in the Freedom of Information Act 2000)  

then

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Step 13

Complete form MS164 and send the photocopied cashcheques with any documents or correspondence to storage. Follow the guidance in TCM0074140.