TCM0212080 | Payment - direct payments: Direct payments - cancelling and re-issuing (AG)

From HM Revenue & Customs · Tax Credits Manual

To deal with cancelling and re-issuing a tax credits payment, consider steps 1 to 13.

Step 1

Before you continue with this guidance, follow the guidance in TCM0042260

then, if you can continue with this process, and you want to

cancel a BACS payment, User Requested Payment or manual payment posted in CY or PY, go to Step 2.
re-issue a BACS payment, go to Step 4.
request, authorise or reject a User Requested Payment, go to Step 9.
cancel a direct system payment, User Requested Payment or manual payment posted in PY-1 , go to Step 12.
re-issue a manual payment for all years, go to Step 13.

Step 2

From the AMBS Function Menu

select Function PAYMENTS
select Function RECORD APPLICANT FAILED PAYMENT
enter the NINO of the customer to whom the payment was issued in the Key Entry Data screen
- If the payment was made in the Previous Year, select [Previous]
- If the payment was made in Current Year, select [OK]. You’ll be taken to the Record Applicant Failed Payment screen where the 15 most recent payments are shown
  Note: If you’re taken to the Select Award screen, select the relevant award and then select [OK]. You’ll then be taken to the Record Applicant Failed Payment screen.
  then
- go to Step 3.

Step 3

On the Record Applicant Failed Payment screen

select the payment to be cancelled
Note: If the entry in the Payment Method column is ‘Giro’, select [Details] and check the serial number in the ‘Giro Serial Number’ field to identify the correct payment, particularly if more than one payment was issued on the same date.
select [Details]. You’ll be taken to the Cancel Applicant Payment screen
select the appropriate reason from the Cancel Reason box
Note: Make sure that you select a reason that is appropriate to the entry in the Payment Method column. There is only one reason to select if the payment method is BACS and six to select if the payment method is giro.
select [OK]. You’ll be taken back to the Record Applicant Failed Payment screen
- If there are more payments to be cancelled, repeat the actions above for each payment to be cancelled
- If there aren’t any more payments to be cancelled, and it’s
  - appropriate to re-issue the cancelled BACS payment, go to Step 4.
    Note: Direct system cashcheque payments were withdrawn on 31 March 2017. If no account details are present and new details cannot be obtained consider re-issue as a manual payment.
  - appropriate to re-issue the User Requested Payments, go to Step 9.
  - appropriate to re-issue the manual payment, go to Step 13.
  - not appropriate to re-issue the cancelled payments, select [OK]. An entry will be created on the Applicant Failed Payments work list. Take no further action.
    Note: If you cancel the wrong payment by mistake, follow the guidance in TCM0212300 then return to this guidance.

Step 4

Check the year the payment relates to.

If the payment relates to CY or PY, go to Step 5.
If the payment relates to PY-1, go to Step 6.
If the payment relates to PY-2 or earlier, go to Step 7.

Step 5

If the payment relates to CY or PY

select Function RECORD FAILED PAYMENT
enter the NINO of the customer to whom the payment was made in the Key Entry Data screen
- If the payment relates to PY, select [Previous]
- If the payment relates to CY, select [OK]. This will take you to the Record Applicant Failed Payment screen where the 15 most recent payments are shown
  - select the cancelled payment
    Note: If more than one payment has an entry in the Payment Status column of ‘Cancelled’, re-issuing any one payment will re-issue all the cancelled payments.
  - select [Re-issue]. The message ‘Have you cancelled all the appropriate payments prior to re-issue?’ will display - If all the payments that need to be cancelled have been cancelled prior to re-issue, select [Yes]. This will prompt re-profiling of the payments - If all the payments that need to be cancelled haven’t been cancelled prior to re-issue, select [No]. This will take you back to the Record Applicant Failed Payment screen
    then - return to the previous guidance you were previously following.

Step 6

If the payment relates to PY-1 and PY-2

use Function AMEND APPLICATION choosing the Correction option
go to the Income screen
note down the PY-1 income figure of the customer to whom the failed payment was made to
amend the income details by one penny - for example, if the income figure is £1000.00, enter £1000.01 in the 2006-2007 Income field
select another income field on the same screen
Note: If an (S) for System Estimated Income is present in the field next to the Income field, this will be changed to (E) for Estimated Income.
return to the income details and change the income back to the original amount - for example, if the income figure is £1000.01, enter £1000.00
select ‘Household’ on the toolbar menu
select ‘Details’, the Household Details screen will display
select the Manual Correspondence - ‘Yes’ checkbox
Note: If a Manual Correspondence signal is already set, you don’t need to set one.
select [OK]. This will take you to the Amend Finish screen
select ‘Paper’ from the Source drop down menu
select [OK]
- If the message ‘S18 Refinalisation Rules - Potential inappropriate refinalisation for CCYY-CCYY. If you have the authority to re-finalise under S19, S20 or S21 of the Tax Credit Act 2002 or due to an appeal decision. Press OK to process the change or Cancel’ displays
  - the changes you are making will re-finalise the claim, follow the guidance in TCM0042260 before making any changes
    then, if you can make the change
  - select [OK] on the message
  - go to Step 8.
- If the message ‘S18 Refinalisation Rules - Actual Income for CCYY-CCYY is required. This change will not be accepted’ displays
  - you won’t be able to make the change because the PY actual income is required, follow the guidance in TCM0042260 before making any changes
    then, if you can make the change - select [OK] on the message - go to Step 8.
- If the message ‘S18 Refinalisation Rules - You do not have the authority to re-finalise CCYY-CCYY. This change will not be accepted. Please refer to the appropriate team’ displays
  - the changes you are making will re-finalise the claim
  - select [Cancel]. You’ll be taken to the Amend Application Details screen
  - select [Cancel]
  - when the message ‘All changes to the application will be lost for this session, do you wish to proceed?’ displays, select [Yes]
  - pass the case to a Level 2 User or your manager. For more information, use ‘Level 1 and Level 2 users’ on TCM0320260
  - take no further action.
- If none of the messages display, go to Step 8.

Step 7

If the payment relates to PY-3 or earlier

use Function AMEND APPLICATION, choosing the Correction option to set a manual correspondence marker
select ‘Household’ on the toolbar menu
select ‘Details’, the Household Details screen will display
select the Manual Correspondence - ‘Yes’ checkbox
Note: If there’s a Manual Correspondence signal already set, you don’t need to set one.
select [OK]. This will take you to the Amend Finish screen
select ‘Paper’ from the Source drop down menu
select [OK]
- If the message ‘S18 Refinalisation Rules - Potential inappropriate refinalisation for CCYY-CCYY. If you have the authority to re-finalise under S19, S20 or S21 of the Tax Credit Act 2002 or due to an appeal decision. Press OK to process the change or Cancel’ displays
  - the changes you are making will re-finalise the claim, follow the guidance in TCM0042260 before making any changes
    then, if you can make the change - select [OK] on the message - go to Step 8.
- If the message ‘S18 Refinalisation Rules - Actual Income for CCYY-CCYY is required. This change will not be accepted’ displays
  - you won’t be able to make the change because the PY actual income is required, follow the guidance in TCM0042260 before making any changes
    then, if you can make the change - select [OK] on the message - go to Step 8.
- If the message ‘S18 Refinalisation Rules - You do not have the authority to re-finalise CCYY-CCYY. This change will not be accepted. Please refer to the appropriate team’ displays
  - the changes you are making will re-finalise the claim
  - select [Cancel]. You’ll be taken to the Amend Application Details screen
  - select [Cancel]
  - when the message ‘All changes to the application will be lost for this session, do you wish to proceed?’ displays, select [Yes]
  - pass the case to a Level 2 User or your manager. For more information, use ‘Level 1 and Level 2 users’ on TCM0320260
  - take no further action.
- If none of the messages display, go to Step 8.

Step 8

Use MAINTAIN HOUSEHOLD NOTES and select the ‘Payments’ category to record the appropriate note

‘PA11 - Message for Manual Corre Team - Please send any award notices issued between (insert - todays date and 3 working days later) to storage then remove the Man Corre marker. (Gp?/TM?/initials)’

‘PA12 - Message for Manual Corre Team - Please send any award notices issued between (insert - todays date and 3 working days later) to storage - please do not remove the Man Corre marker. (Gp?/TM?/initials)’

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

then

return to the previous guidance you were previously following.

Step 9

Note: URP’s can only be paid by Bacs from April 2017

Use Function USER REQUESTED PAYMENT

On the Function Menu
- select ‘Payments’
- select ‘User Requested Payment’
- enter the customer’s NINO in the Key Entry Data screen
- select the All checkbox
- select [OK]
  Note: Payment requests for different tax years need to be requested separately.
  then
  - If you’re taken to the Select Award screen - select the relevant award - select [OK]. You’ll then be taken to the User Requested Payment screen
  - If you’re taken to the Select Individual or Select Household screens, use the information you hold to establish which individual or household to select. Once established - select the applicable individual or household - select [OK]. You’ll then be taken to the Select Award screen - select [OK]. You’ll then be taken to the User Requested Payment screen - If the User Requested Payment - Signals screen displays, select [Cancel] on the User Requested Payment signal box
    then
  - go to Step 10.

Step 10

From the details with the returned or missing payment referral or rejected payment you received

select the User Requested Payment screen
go to the User Requested Payment box
select the cancelled or rejected payment
select [Details]. You’ll be taken to the User Requested Payment Detail screen
make a note of the
- payment amounts
- tax credits types
- payment recipient
- reason for payment
- rejection reason for rejected requests
  then
- select [Cancel]. You’ll be taken back to the User Requested Payment screen
- go to Step 11.

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Step 11

On the User Requested Payment screen

select [Request Payt]. You’ll be taken to the User Requested Payment Detail screen
Note: If [Request Payt] is disabled, refer case to TALLO for advice.
enter the CTC and/or WTC amounts you’ve calculated in the relevant CTC and/or WTC amount fields, deducting the amount of any replacement payments already made.
select the payment reason from the Reason For Payment drop down menu
Note: If the default payee for either tax credit isn’t displayed, select the appropriate payee from the Payment Recipient drop down menu.
select [OK]. You’ll be taken back to the User Requested Payment screen
Note: Where CTC and WTC are paid to different payees, you must request separate user requested payments for each credit (unless there’s a genuine reason to pay both credits to the same payee). If an appointee is present on the claim, payments will automatically be issued to the appointee, no matter which payee is selected.
Note: If you want to make changes to a user requested payment you’ll have to cancel out of the screen and re-request the payment. Any other requests you have made will also need to be re-requested.
then
If you need to request further payments, go back to Step 9.
If any other circumstances apply
- select [OK]
  then
- return to guidance you were previously following.

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Step 12

To cancel the payment, enter the following details on the locally stored ‘Cancellation of manual payments’ shared spreadsheet

customer 1, name and NINO
customer 2, name and NINO
serial/reference number
value of the payment
year payment posted in
then
save the spreadsheet before exiting
email the spreadsheet (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
send the spreadsheet by taxpost (This content has been withheld because of exemptions in the Freedom of Information Act 2000) including a photocopy of TC241 or returned payment, following Data Security process
set a clerical BF date on the claim to allow RF Worthing to action the case and to reply
then, once payment has been cancelled by RF Worthing
- to re-issue a direct system payment, go back to Step 4.
- to re-issue a manual payment, go to Step 13.

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Step 13

Use Function View Household Account

enter the NINO of the customer to whom the payment was issued in the Key Entry Data screen
select the relevant award period where the issued payment is posted
select [Postings]
check the payment serial number
payment amount
then
complete Manual Payment Referral form, ensure that the address details are fully completed
email the Manual Payment Referral form to your manager for the replacement payment to be authorised
then
return to the guidance you were previously following.