Introduction of electronic banking for insolvency practitioners making dividend payments

Our previous communication has caused some of you a little confusion, and although all payments have gone to the right place, we are issuing this update to provide clarification.

Please accept our apologies for any confusion caused.

Payment reference number

The unique case reference number can be found on our claims.

You’ll need to use this 13-character payment reference when you pay.

This is the customer’s 10-digit unique case reference number followed by a 3-letter suffix to show the type of insolvency the dividend refers to.

The following details the dividend types and their unique 3-digit suffixes:

• Individual Voluntary Arrangement, use suffix IVA
• sequestrations, use suffix SEQ
• trust deeds, use suffix TRD
• Irish bankruptcy, use suffix IBY
• members voluntary liquidations, use suffix MVL
• company liquidation cases, use suffix LIQ
• individual bankruptcy or partnerships, use suffix BKY
• Company Voluntary Arrangement, use suffix CVA
• partnership voluntary arrangement, use suffix PVA
• administration, use suffix ADM

Note: our unique case reference numbers start with 623, 075 or 880 followed by 7 digits.

Example 1 — payment reference number starting with 623

Reference number from claim: 623/1234567

Dividend type: Individual Voluntary Arrangement

Payment reference: 6231234567IVA (13 characters)

Example 2 — payment reference number starting with 075

Reference number from claim: 075/7654321/XXX

Dividend type: members voluntary liquidation

Payment reference: 0757654321MVL (13 characters)

Example 3 — payment reference number starting with 880

Reference number from claim: 880/1357911/XXX 26 VA

Dividend type: administration

Payment reference: 8801357911ADM (13 characters)

Please contact us if you are unsure how to use the reference format, or our claim does not have a reference number.

Preferential dividends — payment of tax and National Insurance

There may be times when you need to make payment of tax and National Insurance due on a preferential dividend paid to the former employees of an insolvent entity.

For example:

• holiday pay
• arrears of pay arising before the date of insolvency

In these circumstances, you will need to request a new PAYE scheme.

For guidance on how to do this, read Insolvency practitioner bulletin 7 (2021): pay tax and National Insurance on preferential dividends.