PAYE105521 - Individual records: BF policy: how to create a BF (Action Guide)

When you have decided a BF is required, follow steps 1 - 4 below to decide the type of BF you should create. Please refer to PAYE105516 for further guidance on when to create a BF.

This guide is presented as follows.

Deciding which type of BF to create

Steps 1 - 4

Examples

 

Deciding which type of BF to create

1.

Is there an NPS record for the customer?

 
  • Yes - go to step 2

 
  • No - go to step 4

2.

Are you reviewing an existing work item?

 
  • Yes - Create a BF by setting a BF date on the existing work item
     
    To set the BF date on an existing work item

 
  • Select ‘BF item’ from the ‘Take action’ drop down menu

 
  • Select a BF date and reason

 
  • Make a work item note

 
Please refer to PAYE110060 for further guidance

 
You must make a full Contact History note following the guidance in Action guide tax40011

 
  • No - go to step 3

3.

Will a work item be automatically generated following your review of the correspondence? You will need to check the relevant guidance for the correspondence you are reviewing

 
  • Yes - Make a note of the actions taken and the required BF review date in Contact History. When the work item has been automatically generated the person reviewing the work item will need to set the BF date
     
    You must make a full Contact History note following the guidance in Action guide tax40011

 
  • No - go to step 4

4.

Create a paper BF by attaching a covering stencil to the papers under review. The covering stencil should include designatory details of the customer, the reason for the BF and the BF review date

 

You must make a full Contact History note following the guidance in Action guide tax40011

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Examples

Below are examples of situations where the type of BF has been decided following the Action Guide.

Example 1

Letter received from a customer advising income from property received from August of the previous tax year with an estimated profit of £2,400 for the current tax year.

The customer has not provided a contact telephone number and a letter is sent requesting details of the income from property received in the previous tax year.

A BF will be required as there is a clear indication of an underpayment in excess of the tolerance.

Outcome

You note Contact History with the information required, the tax year and the actions to be taken once the information has been received.

As a work item will not be automatically generated you need to create a paper BF.

Example 2

Form P85 received from a customer advising departure from UK but there is doubt and difficulty around the average number of days spent visiting the UK.

You refer the query to CAR for specialist advice and advise the customer of the actions taken.

A BF will be required as you are awaiting information from another part of HMRC.

Outcome

You note Contact History with the information required, the tax year and the actions to be taken once the information has been received.

As a work item will not be automatically generated you need to create a paper BF.

Example 3

Letter received from a customer with multiple forms P60 for the previous year. The reconciliation results in an underpayment of £3,100 which cannot be collected through the tax code.

A BF will be required as there is a clear indication of an underpayment in excess of the tolerance.

Outcome

You note Contact History with the actions taken and the required BF review date.

As work item 236 will be automatically generated the person reviewing the work item will need to set the BF date.