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HMRC internal manual

Tax Credits Manual

Payment - returned or not received: TC241 declaration received

Checklist

Before you follow this guidance, make sure you have

  • the correct user roles to follow this guidance. 
  • you are in the correct MU. Use TCM0322460 for the correct MU number.

Guidance

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.

Step 1

If you have received a TC241 pseudo referral from the Contact Centre, go to Step 2.

If you have received a TC241 from the customer or an email from the Contact Centre stating that, even though PARS shows that the cashcheque was cashed, they were not the person who cashed it, go to Step 16.

If you have received sight of a cashcheque from Finance, go to Step 12.

If you have received a reply from Finance regarding a payable order, go to Step 13.

Step 2

If the TC241 has been fully completed, go to Step 4.

If the TC241 has not been fully completed, go to Step 3.

Step 3

Check Household Notes to determine if the missing details are displayed and check for any messages relating to manual cashcheques or User Requested Payment. For how to do this, use TCM1000067.

If the missing details are displayed, go to Step 4.

If the missing details are not displayed

  • issue TC241a to the customer including the TC241
  • update Household Notes with the message PR18 from TCM0168040. For how to do this, use TCM1000001
  • take no further action.

Step 4

Check the TC241 has been signed by the payee. For how to do this, use TCM1000433.

If the form has been signed by the payee, go to Step 5.

If the form has not been signed by the payee

  • issue TC241a to the customer including the TC241
  • update Household Notes with the message PR17 from TCM0168040. For how to do this, use TCM1000001
  • take no further action.

Step 5

Establish the payment method for the missing payment.

If the payment has been made using direct system cashcheque, go to Step 6.
Note: Direct system cashcheques were used as a method of payment until April 2017, from this date customers are required to be paid directly into a bank or building society account.

If the payment has been made using manual cashcheque

  • contact the manual payments team to obtain the R92 number
  • note the cashcheque serial number
    Note: You will need the R92 and cashcheque serial number when you check PARS.
  • go to Step 9.

If the payment has been made using User Requested Payment (cashcheque), go to Step 7.

If the payment has been made using payable order

  • obtain R92 number from manual payment team
  • send email to Payable Order, Services (Finance) to confirm if payment has been cashed
  • BF the case for 7 days.

If the payment has been made using payment voucher, go to Step 14.

Step 6

Check the tax credit computer to determine if the payment has been issued. For how to do this, use TCM1000435.

If the payment is showing as issued

  • note the cashcheque serial number
    Note: You’ll need the serial number when you check PARS.
  • go to Step 9.

If the payment is not showing as issued

  • cancel and re-issue the payment for the customer by following the guidance in TCM0212080
    Note: When considering re-issuing payments and bank details held, re-issue as a BACS payment. When bank details not held re-issue as a manual payment.
  • update Household Notes with the message PR14 from TCM0168040. For how to do this, use TCM1000001
  • take no further action.

Step 7

Check Household Notes for the note, which confirms the Manual Payment Team, issued and authorised the User Requested Payment.

If there is a note from the Manual Payment Team, go to Step 8.

If there is not a note from the Manual Payment Team

  • phone the Manual Payment Team
  • ask them if the payment was issued
  • go to Step 8.

Step 8

Note: A payment cannot be issued until it has first been authorised on the tax credit computer. However, it is possible for a payment to be authorised but not issued.

If the payment was authorised but not issued

  • phone the Manual Payment Team
  • ask them to issue the payment
  • update Household Notes with the message PR36 from TCM0168040. For how to do this, use TCM1000001 
  • take no further action.

If the payment was authorised and issued, go to Step 9.

Step 9

Check PARS to determine if the customer has cashed the payment. For how to do this, use TCM1000412.
Note: If the payment is not shown on PARS refer to your TALLO for advice.

If the payment has not been cashed

  • cancel and re-issue the payment for the customer by following the guidance in TCM0212080
    Note: When considering re-issuing payments and bank details held, re-issue as a BACS payment. When bank details not held re-issue as a manual payment.
  • update Household Notes with the message PR14 from TCM0168040. For how to do this, use TCM1000001
  • take no further action.

If the payment has been cashed, go to Step 10.

Step 10

Check if the encashment amount of the missing cashcheque matches the original issue amount. For how to do this, use TCM1000412.

If the encashment amount does not match the original issue amount

  • contact compliance and explain why you have contacted them
  • ask if they wish to see sight of the case
  • go to Step 11.

If the encashment amount does match the original issue amount

  • request sight of the missing cashcheque and the cashcheque issued before and the cashcheque issued after from Finance, if applicable. For how to do this, use TCM1000413
  • update Household Notes with the message PR34 from TCM0168040. For how to do this, use TCM1000001 
  • BF the case for 14 days.

Step 11

If the compliance officer wishes to see the case

  • send TC241 to the compliance office
    Note: You must follow the B&C Send and Receipt guidance when sending correspondence to another team.
  • cancel and re-issue the payment for the customer by following the guidance in TCM0212080
    Note: When considering re-issuing payments and bank details held, re-issue as a BACS payment. When bank details not held re-issue as a manual payment.
  • update Household Notes with the message PR14 from TCM0168040. For how to do this, use TCM1000001
  • take no further action.

If the compliance officer does not wish to see the case

  • request sight of the missing cashcheque and the cashcheque issued before and the cashcheque issued after from Finance, if applicable. For how to do this, use TCM1000413
  • update Household Notes with the message PR31 from TCM0168040. For how to do this, use TCM1000001 
  • BF the case for 14 days.

Step 12

Check if the signature on the cashcheque matches the one on the TC241.

If the signature on the cashcheque matches the one on the TC241

Do not replace the payment

  • issue TC1098 to the customer
  • update Household Notes with the message PR40 from TCM0168040. For how to do this, use TCM1000001 
  • take no further action.

If the signature on the cashcheque does not match the one on the TC241

  • cancel and re-issue the payment for the customer by following the guidance in TCM0212080
    Note: When considering re-issuing payments and bank details held, re-issue as a BACS payment. When bank details not held re-issue as a manual payment.
  • update Household Notes with the message PR39 from TCM0168040. For how to do this, use TCM1000001
  • contact compliance and ask if they wish to see the case
  • take no further action.

Step 13

If the finance confirm the payment has been cashed

Do not replace the payment

  • issue TC1098 to the customer
  • update Household Notes with the message PR41 from TCM0168040. For how to do this, use TCM1000001 
  • take no further action.

If the finance confirm the payment has not been cashed

  • email to Payable Order Services (Finance) to request the payable order is stopped
  • cancel and re-issue the payment for the customer by following the guidance in TCM0212080
    Note: When considering re-issuing payments and bank details held, re-issue as a BACS payment. When bank details not held re-issue as a manual payment.
  • update Household Notes with the message PR14 from TCM0168040. For how to do this, use TCM1000001
  • take no further action.

Step 14

Check the payment voucher MI CAF to determine if the payment has been cashed.

If the payment has been cashed, go to Step 15.

If the payment has not been cashed

  • use the designated email address to request the payment is cancelled
    Note: You will receive email confirmation this action had been done within an hour.
  • cancel and re-issue the payment for the customer by following the guidance in TCM0212080
    Note: When considering re-issuing payments and bank details held, re-issue as a BACS payment. When bank details not held re-issue as a manual payment.
  • update Household Notes with the message PR14 from TCM0168040. For how to do this, use TCM1000001
  • take no further action.

Step 15

Check TC241

If the customer has supplied a crime reference number

  • cancel and re-issue the payment for the customer by following the guidance in TCM0212080
    Note: When considering re-issuing payments and bank details held, re-issue as a BACS payment. When bank details not held re-issue as a manual payment.
  • update Household Notes with the message PR14 from TCM0168040. For how to do this, use TCM1000001
  • take no further action.

If the customer has not supplied a crime reference number

Do not replace the payment

  • issue TC1098 to the customer
  • update Household Notes with the message PR67 from TCM0168040. For how to do this, use TCM1000001 
  • take no further action.

Step 16

Check Household Notes to determine if the case has been referred to Compliance.

If the case has been referred to Compliance and there is a Compliance message,

  • forward TC241 to the compliance officer
    Note: You must follow the B&C Send and Receipt guidance when sending correspondence to another team.
  • update Household notes with a message of action taken. For how to do this, use TCM1000001
  • take no further action.

If the case has not been referred to Compliance, go to Step 17.

Step 17

Check Household Notes to determine if the customer’s missing payment request was dealt with.
Note: This would be by either replacing the payment for the customer or, after consideration, refusing the customer’s request for a replacement payment.

If we have dealt with the customer’s missing payment request, go to Step 18.

If we have not dealt with the customer’s missing payment request, go back to Step 2.

Step 18

If the missing payment was replaced for the customer, go to Step 19.

If the missing payment was not replaced for the customer

  • issue TC1098 to the customer
  • go to Step 19.

Step 19

Contact compliance to see if they wish to see sight of the case

If the Compliance Officer wants you to send the case to them

  • forward TC241 to the compliance officer
    Note: You must follow the B&C Send and Receipt guidance when sending correspondence to another team.
  • update Household Notes with a message of action taken. For how to do this, use TCM1000001 
  • take no further action.

If the Compliance Officer does not want you to send the case to them

  • take no further action.