SAM110030 | Repayments: issue repayment: BACS repayment rejection

There are several reasons why a BACS repayment rejection can occur

• The bank / building society sort code is invalid

• The receiving bank / building society cannot identify the customer account from the information given

• Repayment cannot be made to the building society (or former building society) account specified by the taxpayer

Where repayment by BACS has proved unsuccessful, notification to the office that is responsible for the processing activities will be provided either by

• The SA computer system

Or

• HMRC Finance

BACS rejection notified by the SA computer system

When a repayment is rejected by BACS because the sort code is invalid, a work item will appear on ‘W029 - Rejected Repayment’ work list.

These work items will be notified to the office that is responsible for the processing activities by Work Management, and subject to action by the officer with the user role of ‘Payment Processor’.

More information on the action to take when reviewing the work lists is available in section ‘Repayment Work Lists’ (see SAM113000 onwards).

BACS rejection notified by HMRC Finance

HMRC Finance (Worthing) is responsible for dealing with Self Assessment and Corporation Tax BACS Direct Credit repayments that have been returned by the customer’s bank.

Where HMRC Finance is notified of incorrect details by the receiving bank/ building society, HMRC Finance will

• Cancel the repayment on the SA system using function VIEW REPAYMENT

• Contact the office that is responsible for the processing activities and inform them of the BACS rejection

Note: Payments should not be cancelled by local offices unless requested to do so by HMRC Finance.

Enquiries should be directed to BACS Traces, and Recalls Inbox.

On receipt of notification from HMRC Finance of a BACS rejection you must follow the Action Guide at SAM110031.

More detailed advice on making repayment is provided in subject ‘Non-Automatic Repayments’ (SAM110140).