Guidance

Paying for HM Land Registry services by variable Direct Debit

Updated 9 November 2020

Applies to England and Wales

1. Paying for HM Land Registry services by variable Direct Debit

A variable Direct Debit (VDD) scheme is one where the value being debited varies, as does the frequency of the debit, to accord with the

nature of the business involved. This differs from a fixed Direct Debit where a schedule, and often the amounts being debited, are decided in advance. Due to the nature of payments for HM Land Registry applications, it is not feasible to either debit monthly or preset the value.

The scheme consists of a set of terms and conditions, literature, authorisation, responsibilities and mechanisms that detail the arrangement, and enables HM Land Registry to accept VDD as a payment method, and customers to be able to use it.

The main benefits of HM Land Registry’s VDD payment scheme (‘the scheme’) include the following.

1.1 Increased efficiency

This payment method provides a more efficient management of fee payment for both customers and HM Land Registry.

1.2 Fees correctly assessed and collected

Fees are correctly assessed and the completion of applications will no longer be delayed because the fee is outstanding.

1.3 Credit adjustments in the event of a cancellation or error

Where an adjustment of an individual fee is identified, the adjustment will be credited to the customer’s key account and used to reduce the next collection.

1.4 Supporting e-registration

HM Land Registry offers a reduction in fees on applications relating to whole registered titles delivered via the portal or Business Gateway.

1.5 Control over payment method

You can cancel the Direct Debit instruction at any time.

Although you may continue to use other payment methods, such as cheques, HM Land Registry encourages the use of VDD. All services delivered through the portal must be paid for using VDD.

1.6 Direct Debit guarantee

Direct Debit is a payment scheme that protects the customer with a guarantee. The Direct Debit guarantee provides assurance to the customer that any money debited in error will be refunded immediately by the customer’s bank. This guarantee covers those circumstances where there is no resolution available between the customer and HM Land Registry.

2. Joining the scheme

2.1 Requirements

To use VDD as a means of payment you need to have:

• registered with the scheme and received a Direct Debit account number
• a valid bank or building society account within the UK from which a Direct Debit payment can be collected
• sufficient funds available to the account when payment is due
• a valid email address capable of receiving automated notifications. Advance notifications in respect of collections are sent by email. A breakdown of each collection is available through the finance responsibility in portal
• quoted your Direct Debit account number on all applications that are to be paid by Direct Debit, and, where appropriate marked the relevant box.

Please note that before applying for the scheme your organisation must consider the rules of its regulating body, where applicable. If you are governed by such regulations and have any concerns you must seek guidance from your respective professional or regulatory body.

We will carry out checks on all applications received, using either third party credit agencies or by reviewing the history of accounts already held by the applicant with HM Land Registry. Applications may be declined if the applicant does not satisfy the requirements for acceptance on the scheme.

If you have a business need, you may apply for more than one Direct Debit account. Each account may relate to the same banking details, but the postal or DX address attributed to each can differ. Alternatively, you may apply for additional accounts with completely unique bank and address details. We however discourage you from applying for multiple Direct Debit accounts with the same banking and address attributes.

All new applications for VDD accounts will be provided with a new unique account ‘key’ number. This account number will also appear against relevant payments appearing on your bank statement. Any enquiries relating to your VDD account should be directed to the address shown on the advance notification. All other enquiries should be directed to Customer Support by emailing us at customersupport@mail.landregistry.gov.uk or on 0300 006 0411.

An application form and mandate must be completed for each new VDD account required. An AFS1 application form must also be completed if access to the portal is also required.

2.2 Terms and conditions

On completion and lodgement of the Direct Debit instruction HM Land Registry will provide you with a VDD number within 15 working days. Your account number should be quoted on applications you wish to pay for by Direct Debit and in any correspondence or telephone communications.

2.3 Customers with Direct Debit accounts associated with the portal

Customers will receive an advanced notification of collection of any debit by email once the total sum outstanding is £50 or more.

A notification of intended collection will be sent by email in respect of all uncollected transactions where the account is in debit on the last working day of the week.

It is important to note that in the event of an adjustment being applied to an account that results in the account being in credit, no collections and no notifications will be issued until a collection is due.

The advance notification is sent by email. Customers will be able to access a detailed breakdown and other account information online. They will also be able to sort and view the detailed transaction entries by date, customer reference, title number, fees paid or transaction type. All information can be downloaded. Hard copies of advance notifications and detailed breakdowns should be retained for audit and accounting purposes as their availability online is limited to three months.

2.4 Customers with Direct Debit accounts not associated with the portal

Customers will receive by email two Direct Debit notifications, one attaching a csv file with the breakdown, and the other a pdf file showing a breakdown of the collection, the total amount to be collected and the date of the collection.

If the VDD is rejected for any reason, HM Land Registry will suspend your account to halt further processing and may request payment for the transactions represented by this request and for all other transactions charged to this account by cheque.

Direct Debit instructions expire if they are not used periodically. To prevent this, if a period of 12 months, or any period subsequently chosen by HM Land Registry, elapses without a collection being made against an instruction, HM Land Registry reserves the right to reject this as a payment method of fees and request payment by cheque. This may affect the facilities the customer can use to access HM Land Registry services.

HM Land Registry may, at its discretion, refuse to accept the request to pay by Direct Debit if the customer:

• fails to make funds available or becomes insolvent
• has an administrative receiver appointed
• is compulsorily or voluntarily wound up
• proposes an individual voluntary arrangement
• has been intervened by the Law Society or otherwise excluded from trading by a recognised body

or if the HM Land Registry bona fide believes that any of those events may occur.

We may also remove you from the scheme if you have a high volume of disputed transactions where the actual value applied by HM Land Registry is shown to be consistently correct.

Your bank may cancel a Direct Debit instruction if the facility remains inactive for 24 months. This is a standard feature of Direct Debit schemes.

HM Land Registry reserves the right to change any or all of these terms and conditions upon reasonable notice being given.

2.5 Updating your details

Customers are responsible for ensuring HM Land Registry is notified of any changes to your bank account details and where necessary a new mandate is completed. Please note there is a minimum five-day period from receipt of a new mandate to completion of set up. To update the bank account of an existing Direct Debit, complete a Variable Direct Debit Mandate Form to tell us about changes to the bank account details of a VDD account. You can submit a request electronically or by post to, HM Land Registry Accounts Receivable, PO Box 2079, Trafalgar House (6th Floor), Croydon, CR90 9NU or DX 8888, Croydon 3. A separate mandate is required for each VDD key account held. Customers are also responsible for ensuring that sufficient funds are available in their nominated bank account for collection of fees.

2.6 Cancelling a VDD

The Direct Debit instruction can be cancelled at any time. To do this you simply write to your bank or building society cancelling the instruction and send a copy of the cancellation letter to HM Land Registry. Please note that cancelling the Direct Debit instruction stops the use of Direct Debit as a payment method. That will restrict the methods available for the procurement of HM Land Registry services as an alternative payment method will need to be used.

2.7 Security of your financial details

A restricted group within HM Land Registry’s finance team will administer all matters relating to the Direct Debit scheme, and financial and other organisational data will not be used for any other purposes without your permission.

To register for the scheme please complete the HM Land Registry application form together with the Direct Debit mandate at the back of this leaflet.

3. How to use HM Land Registry’s variable Direct Debit payment scheme

HM Land Registry’s variable Direct Debit payment scheme will operate on a daily basis and customers may continue to submit applications at any time, although HM Land Registry will not process financial transactions under the scheme on weekends or public holidays.

3.1 Use of the account

Where required, the payment method should be indicated on the application form by ticking the appropriate tick box.

3.2 Direct Debit notification

HM Land Registry will issue a Direct Debit notification every time a collection of fees is due. If you have set up more than one Direct Debit account with us you may receive more than one Direct Debit notification per day. Where a collection is due the notification will be sent by email to an address of the customer’s choice. In nominating an account to receive the notifications there are three important points to consider.

• As HM Land Registry can only send notifications to one email address, a group mailbox may be more appropriate.
• Customers are responsible for ensuring that their internal electronic mail systems are configured to receive these notifications.
• All information can be downloaded. Advance notifications and detailed breakdowns should be retained for audit and accounting purposes. The customer is responsible for downloading and the safe storage of this information.

Customers will receive an advanced notification of collection of any debit by email once the total sum outstanding is £50 or more. A notification of intended collection will be sent by email in respect of all uncollected transactions where the account is in debit on the last working day of the week. Two working days after the notification, the Direct Debit payment will be processed against the customer’s nominated bank account. It is important to note that in the event of an adjustment being applied to an account that results in the account being in credit, no collections and no notifications will be issued until a collection is due.

3.3 Notifications for customers with Direct Debit accounts associated with the portal

The notification will contain details of the key account, the collection it is in respect of, the total amount to be collected, and the date of collection.

Customers will be directed to their portal account log-in page from the notification. The detailed breakdown of the collection is available by logging onto Business e-services using the responsible person or financial administrator user ID and password and following the link to “View VDD information” from Administrative Services.

Details of uncollected transactions will be available on the VDD Information Services page by following the link in the portal to “Unreceipted Transactions”.

Access to detailed information will be available to the Responsible Person or the Financial Administrator.

Transactional information will be available on the VDD Information Services page for three months following the end of the month the transaction was collected. This time limit does not apply to details of uncollected transactions which will remain visible until collected.

3.4 Notifications for Direct Debit account customers not associated with the portal

There will be two Direct Debit notifications one with a pdf file attached containing a breakdown of the collection, the total amount to be collected and the date of the collection, and a second with a csv file with the breakdown.

3.5 Disputed transactions

If you believe a transaction to be inaccurate, you should contact Customer Support at customersupport@mail.landregistry.gov.uk or on 0300 006 0411. HM Land Registry will correct any errors we make. If your account is in credit, this will be used against subsequent debits. For any accounts that remain in credit for a prolonged period of time HM Land Registry’s accounts receivable team will arrange a refund settlement. Full transaction details will be shown on the notification.

3.6 Bank statements

On your bank statement one transaction per notification issued will be shown as ‘HM Land Registry #######’, where the #s represent the account key number allocated to that notification.