EM1937 - Working the Enquiry: General Payments on Account: Conditions

It is important to ensure that any general payments of account or amounts paid on assessments within the scope of the settlement are identified and treated correctly in the letter of offer, see EM6340. Additionally if the settlement involves an instalment offer, see EM6404.

A payment on account made voluntarily and without legal obligation is repayable at the taxpayer’s request. Any such request should be referred to HMRC, Accounts Office, Shipley, Bradford, BD98 8AA (quoting the SAFE reference) together with written confirmation that the sum can be repaid, See EM1938.

Unexpected payment on account

If you receive an unexpected payment on account, or a request for a SAFE reference to make a payment, consider any covering letter very carefully.

• If the payment is expressed to be “in full settlement” of your enquiries, or words to that effect, see EM6343.
• If the payment is accompanied by

• an offer for a substandard amount or
• an offer for the amount sought but which cannot be accepted locally, see EM6402.

In each case, you must promptly write to inform the sender that the payment will only be accepted as a payment on account and that acceptance does not imply agreement to settle on their terms, or acceptance of any offer that has been made. If they have only requested a payment reference without making a payment, include this message in the letter with the payment reference.

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