PAYE90011 - taxpayer end of year: taxpayer underpayments: direct voluntary payments (Action Guide)


A taxpayer may make a Direct Voluntary Payment (DVP) in settlement of an underpayment of tax. To deal with a DVP follow steps 1 - 24 below. This guide is presented as follows


Issue a payslip for payment of taxSteps 1 – 2
Form P209 receivedSteps 3 – 10
Form P211(Z) receivedSteps 11 – 21
Re-allocate a direct voluntary paymentSteps 22 - 24

For details of how to access any of the COP functions use the [Index Of Functions] button on the left of the screen.


Issue a payslip for payment of tax

When the taxpayer has asked to make a DVP or you are writing to the taxpayer / agent requesting a DVP, you need to send a payslip to the taxpayer / agent so that payment can be made


  1. Issue form P254 and a FREEPOST envelope addressed to Banking Operations

  • Enter the year at the top of form P254
  • Also complete the boxes on the lower part of form P254, that is Office number, Year and Taxpayer’s NINO
  1. Include the form P254 and a FREEPOST envelope addressed to your associated Banking Operations office in the letter to the taxpayer / agent

  • You can also use form P254 to send a payment to Banking Operations that you have received from the taxpayer / agent

Form P209 received

When a taxpayer makes a DVP in settlement of an underpayment of tax, Banking Operations reports DVPs to you on forms P211(Z). The P211(Z) may have been sent to the previous office and they will report the DVP to you on form P209.


  1. Check if the taxpayer is dealt with in your office

  2. If the taxpayer is not in your office send the form P209 on to the correct office

  • Return the form P209A to the office who issued it with an attachment explaining this
  1. If the taxpayer is dealt with in your office

  • Use COP Function CS to check if you agree with how the DVP has been credited on form P211(Z)
  1. If you agree with how the DVP has been credited

  • Use COP Function CS to record the DVP against the correct year and revise the entry in the O/P-U/P B/F field on the record. If the VP reference is longer than the field allows then ‘VP’ should be excluded from the reference and an eNote made of the full reference
  • Revise the coding if needed
  • Set the POTA signal for the year in which the potential underpayment arose
  • Use ENOTE ‘POTA signal’ from the SEES notes paster and give the reason why the signal has been set
  • Go to step 8
  1. If you do not agree with how the DVP has been credited

  • Attach a note with the details to form P209A
  1. Check the details on form P209

  • If they are correct, return form P209A, with any attachment, to the office that issued it. Go to step 10
  • If they are not correct go to step 9
  1. Attach a note to the form P209A of the details that need to be changed

  • Return the form P209A with the attachment(s) to the office that issued it
  1. Use ENOTE ‘Voluntary payment received’ from the SEES notes paster to record your actions and collection reference number and dispose of the form

Form P211(Z) received

Banking Operations may also use form P211(Z) to revise an earlier similar payment advice. A form that reports a reduced payment shows MINUS after the amount box. Deal with these in the same way as others.

Take the following action when you receive a form P211(Z)


  1. Check if the taxpayer’s record is still in your office

  • If the taxpayer is not dealt with in your office use IRIS Function INP561 to acknowledge receipt and go to step 12
  • If the taxpayer is dealt with in your office use IRIS Function INP561 to acknowledge receipt and go to step 16
  1. Use form P209 to report the DVP to the correct office

  • File the form P211(Z) in your desk pad
  1. BF the record for 6 weeks

  2. If form P209A has been received from the office dealing with the taxpayer’s current tax affairs

  • If the form P209A has been returned with no attachments / comments - return part 2 of form P211(Z) to Banking Operations and dispose of the P211(1)(Z)
  • If the form P209A has been returned with an attachment / comment indicating that the DVP had not been credited correctly - attach a note with the details to part 2 of form P211(Z), return it to Banking Operations and dispose of the P211(1)(Z)
  • If the form P209A has been returned with an attachment / comment indicating that the information is not correct - attach a note to part 2 of form P211(Z) of the details that need to be changed, return it to Banking Operations and dispose of the P211(1)(Z)
  • If the form P209A has been returned with attachments / comments indicating that the DVP has not been credited correctly and the information is not correct - attach a note to part 2 of form P211(1)(Z) of the details that need to be changed regarding both issues, return it to Banking Operations and dispose of the P211(Z)
  1. If the P209A has not been received

  • Send a reminder on e-form - standard 41A to the office dealing with the taxpayer’s current tax affairs
  • Go to step 13
  1. If the taxpayer is dealt with in your office

  • Use COP Function CS to check if you agree with how the DVP has been credited on form P211(Z)
  1. If you agree with how the DVP has been credited

  • If the year is cleared (that is, payment is for an underpayment shown in CS)
  • Use COP Function CS to record the DVP against the correct year and revise the entry in the O/P-U/P B/F field on the record. If the VP reference is longer than the field allows then ‘VP’ should be excluded from the reference and an eNote made of the full reference
  • Revise the CY and / or CY+1 code if needed
  • If the year is not cleared (that is, the payment is for a potential underpayment)
  • Set the POTA signal for the year in which the PUP arose
  • Revise the CY and / or CY+1 code if needed
  • Use ENOTE ‘POTA signal’ from the SEES notes paster and give the reason why the signal has been set
  • Use COP Function NO to make a note on the COP record of the DVP and how it is being credited and go to step 19
  1. If you do not agree with how the DVP has been credited

  • Attach a note with the details to part 2 of form P211(Z) and
  • Use COP Function TD to make a note on the COP record of this and go to step 19
  1. Check the printed details on form P211(Z)

  • If they are correct - complete and return part 2 of form P211(Z), with any attachment, to Banking Operations and go to step 21
  • If they are not correct go to step 20
  1. Do not change the printed details on the form

  • Attach a note to form P211(Z) of the details that need to be changed
  • Complete and return the form P211(Z) with the attachment(s) to Banking Operations
  1. Use ENOTE ‘Voluntary payment received’ from the SEES notes paster to record your actions and the collection reference number and dispose of the P211(1)(Z)

Re-allocate a direct voluntary payment

At a later date you may need to re-allocate a DVP


  1. Amend or delete the entry on the CS record, format 4, as appropriate regarding the re-allocated DVP

  2. Send form R90A(Z) to Banking Operations regarding the re-allocated monies

  3. Use ENOTE ‘Voluntary payment re-allocated’ from the SEES notes paster to record details

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