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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

Specialist areas - Bank Liaison: Bank accounts - foreign

Checklist

Before you follow this guidance, make sure

  • you follow the guidance in TCM0138020 
  • you have the correct user roles to follow this guidance. Use the B&C Roles and Access Catalogue. You can find this by going to the Benefits & Credits homepage, selecting ‘R’ on the B&C A-Z index, selecting ‘Roles and Access Process’, selecting ‘Roles & Access Catalogue’ from the Related links menu
  • 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 are dealing with a request for a customer’s tax credits to be paid into a foreign bank account, go to .

If you are dealing with a TC682 mandate form, go to .

If you are dealing with an expired BF, go to .

If you have received confirmation from the Sponsor Bank to a mandate form sent to them, go to .

If you have received a request to stop the customer’s tax credits being paid into a foreign bank account, go to .

Step 2

If the foreign account is in a country listed below, go to .

  • Australia, Austria
  • Bahamas, Belgium
  • Canada, Caribbean, Cyprus
  • Denmark
  • Estonia
  • Finland, France
  • Germany, Greece, Guyana
  • Hong Kong
  • Ireland, Israel, Italy
  • Latvia, Luxembourg
  • Malta, Monaco
  • Netherlands, New Zealand, Norway
  • Poland, Portugal
  • Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland
  • USA

Note: Foreign bank accounts can only be set up where there are ongoing payments of Tax Credits. They cannot be set up for one-off payments of arrears.

If the foreign account is in a country listed below, go to .

  • the Czech Republic
  • Hungary
  • Lithuania
  • Romania

If the foreign account is in a country not listed

  • the customers tax credit payments cannot be made into the foreign bank account
  • send the request to the Operations team

Note: The Operations team will need to make enquiries to find an alternative bank account to pay the customers tax credits.

  • take no further action.

Step 3

Check Household notes for Compliance activity, Team Adjusting Payments (TAP) or Transcontinental Automated Payment Service (TAPS) message. Follow the guidance in TCM0134420 

If there is a Compliance, TAP or TAPS message

  • follow the directions given in the message.

If there is not a Compliance, TAP or TAPS message, go to .

Step 4

Check if there is a Complex Case message or the Complex Case signal has been set. Follow the guidance in TCM0284140 

If there is a Complex Case message or the Complex Case signal has been set

  • follow the directions in the message

Note: Some Complex cases can only be paid manually by the Complex Case Team.

  • update Household notes. For how to do this, use TCM1000001
  • take no further action.

If there is not a Complex Case message or the Complex Case signal has not been set, go to .

Step 5

  • send the customer a TC682 mandate form
  • update Household notes with the message PB25 from TCM0168020. For how to do this, use TCM1000001 
  • set a clerical BF for 28 days
  • take no further action.

Step 6

Check whether the returned TC682 mandate form is fully completed

If the TC682 mandate form is fully completed, go to .

If the TC682 mandate form is not fully completed

  • return the TC682 mandate to the customer
  • update Household notes. For how to do this, use TCM1000001 
  • set a clerical BF for 28 days
  • take no further action.

Step 7

Check the validity of the International Bank Account Number (IBAN) using the Sponsor Bank IBAN checker

If the IBAN is valid

  • complete the Excel spreadsheet with the

    • customers full name
    • customers NINO
    • foreign bank account number and sort code
    • International Bank Account Number (IBAN)
    • Bank Identifier Code (BIC)
    • the Country the foreign bank account is based
  • go to .

If the IBAN is not valid

contact the customer to obtain the correct details. Follow the guidance in TCM0094080 

Note: Contact cannot be made by telephone if the customer lives abroad.

then

  • go to .

Step 8

  • fax a copy of the completed mandate (This content has been withheld because of exemptions in the Freedom of Information Act 2000) to the Sponsor Bank (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

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

  • update Household notes with the message PB27 from TCM0168020. For how to do this, use TCM1000001 
  • make a note on the excel spreadsheet
  • set a clerical BF for eight days to await acknowledgement from the Sponsor Bank that the customers details have been entered on their database
  • take no further action.

Step 9

  • explain to the customer that it is not possible to make tax credit payments into their account
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

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

  • update Household notes. For how to do this, use TCM1000001 
  • take no further action.

Step 10

If you are dealing with an expired BF relating to the issue of a TC682 mandate form

  • send a second TC682 mandate form
  • update Household notes with message PB25 from TCM0168020. For how to do this, use TCM1000001 
  • set a clerical BF for 28days
  • take no further action.

If you are dealing with an expired BF relating to the second issue of a TC682 mandate form

  • the referral should be rejected
  • update the Household notes with the message PB26 from TCM0168020. For how to do this, use TCM1000001 
  • complete the excel spreadsheet with the information held and the reason for the rejection
  • take no further action.

If you are dealing with an expired BF relating to a referral to the Sponsor Bank, go to .

Step 11

If the expired BF relates to the Sponsor Bank confirming that their database has been updated with a customers foreign bank account details

  • phone the Sponsor Bank for the return of the TC682 mandate form and their confirmation document

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

  • set a clerical BF for eight days
  • take no further action.

If the expired BF relates to the Sponsor Bank confirming that the customers payments have stopped being made into a foreign bank account

  • phone the Sponsor Bank for their confirmation that the customers details have been removed from their database

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

  • set a clerical BF for eight days
  • take no further action.

Step 12

Check the details on the Sponsor Bank confirmation document against the mandate details.

If the details are the same

  • update the tax credit database with the Sponsor Bank details

    • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
    • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • enter the customers NINO in the Building Society field as the unique reference number
  • complete the Excel spreadsheet
  • update Household notes with the message PB28 from TCM0168020. For how to do this, use TCM1000001
  • store the casepapers locally
  • take no further action.

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

Note: If the customer has sent in a copy of a cancelled cheque, discard the cheque in confidential waste.

If the details are not the same, go to .

Step 13

  • complete the locally-held fax template and send it to the Sponsor Bank to ask them to remove the customer’s details from their database

Note: This will stop the payments of tax credits into the customer’s foreign bank account.

  • enter an end date on the customer’s details from the Bank Liaison Team’s clerical record or Excel spreadsheet
  • set a clerical BF date for seven days

Note: The Sponsor Bank will provide confirmation that the customer’s details are removed from their database.

  • take no further action.

Step 14

Check whether you have sufficient details to inform the Sponsor Bank to stop the tax credit payments being made into the foreign account

If you do have sufficient details, go to .

If you do not have sufficient details

  • contact the customer to obtain the details needed. Follow the guidance in TCM0094080

Note: Contact cannot be made by telephone if the customer lives abroad.

then

  • go to .