DMBM216130 - Payment Allocation, Overpayments and Repayments: Obtaining a credit to reconcile an accounting record: Repayment in error - DRIER

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Background

A repayment may be made in error when

  • a payment is incorrectly allocated to the record of another customer
  • a repayment is issued from the wrong customer record
  • a repayment is issued to the wrong payee
  • a larger than expected repayment is issued to a customer

In these cases where it is too late to cancel the repayment because

  • the payable order has been cashed
  • the repayment was issued by BACS/CHAPS
  • an incorrectly allocated payment is inaccessible

a credit may be required to reconcile the record of the correct customer.

DRIER

Where the repayment in error cannot be recovered through amendment to the relevant records or because the incorrect payee has not returned the repayment voluntarily it may be necessary to raise a DRIER charge on SAFE, and issue DRIER 31 Repayment in Error (found on SEES)  See DMBM215000for further details.

Note: It is not necessary to wait until the repayment in error is being formally recovered before making a request for a credit. The request for a credit should be made as soon as it is evident that a credit is required. A credit should be requested irrespective of whether the mistake resulting in the error was that of the customer, agent or HMRC.

Requesting a credit

Complete and send a BKSA225 (SEES form) to your manager to authorise and then forward to the Accounting Error Team,Credit request (Corporate Finance) 4956539@internal.hmrc.gov.uk, requesting that a credit be put on the correct customer's record.  

  • the customer’s name
  • reference of charge requiring a credit if appropriate
  • amount of credit required
  • an explanation why the credit is required
  • the SAFE reference of the related DRIER charge or confirmation that a DRIER charge is not appropriate.

If there are no charges for the customer against which the credit can be allocated provide sufficient details to enable the credit to be repaid

 

SA cases

The credit will be sent direct to the SA record of the correct customer and allocated automatically to any outstanding SA charges.

Where there are no outstanding charges the credit will be available as an overpayment on the SA record. If appropriate it can then be repaid in accordance with any repayment request made by the correct customer.

When the credit is received on the SA record, the processing office must make an appropriate entry in SA NOTES.

Note: when reissuing the repayment from the SA record it is important to ensure the bank details being used have been confirmed as correct with the customer.

Non SA cases

Where credit is to be allocated against an outstanding charge

  • B/F for receipt of the credit notification
  • make a suitable note on the historical record.