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 repayments returned by the customer’s bank
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.
When HMRC Finance (Worthing) receive the rejected payment, they will
- Cancel the original repayment on the customers SA record
- Issue a letter to the relevant local office of the action taken
It is then the responsibility of the local office to review the case and reissue the repayment with the correct bank details.
Note: Payments should not be cancelled by local offices unless requested to do so by HMRC Finance.
Enquiries should be directed to the following contacts
| (This text has been withheld because of exemptions in the Freedom of Information Act 2000) |
BACS rejection notified by the SA computer system
When a repayment is rejected by BACS because the bank sort code is invalid, a work item will appear on the ‘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’ (SAM113000 onwards).
BACS rejection notified by HMRC Finance
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
After checking the BACS details taken from the repayment request and noting any discrepancies, use function ISSUE REPAYMENT FROM OVERPAID BALANCE to re-issue the repayment by
- Entering the correct BACS details
Or, if the details are as shown on the repayment request
- Using an alternative method of repayment (SAM110115). You will also need to contact the taxpayer / agent and explain why repayment could not be made by BACS
If the rejection relates to a repayment nominated to charity, you will need to contact the taxpayer to explain that their repayment could not be sent to their chosen charity and to obtain further disposal instructions for the repayment.
More detailed advice on making repayment is provided in subject ‘Non-Automatic Repayments’ (SAM110140).
