COM90040 - Payments: processing payments: payment with conditions attached

Requests for the following are dealt with in section 'Time to Pay' (COM93000 onwards)

• The specific allocation of a payment

And

• Time to Pay, including post-dated cheques

You may occasionally receive a payment accompanied by a letter that attaches certain conditions to the acceptance of the payment. The general aim of the company is to gain an advantage from the acceptance of the payment by

• Preventing HM Revenue & Customs from taking any further action

Or

• Obtaining agreement from the HM Revenue & Customs to a normally unacceptable proposal (such as an extended time to pay agreement)

The more common types of condition attached to a payment is that the payment

• Is for less than the amount which is due but is

• In full and final settlement

And

• Banking the payment is acceptance of the conditions

Or 

• Clears the tax in full on the condition that no interest is charged

The Board's Solicitor has checked the validity of such conditions and has advised that any condition applied to a payment can be safely ignored provided the company is advised immediately in writing that

• The payment is accepted without prejudice
• The conditions attached to the payment are formally rejected

In Debt Management Offices, any payment received with a condition attached must be considered by the Manager or Section Leader before being banked.