HMRC will be phasing out issuing repayments by payable order, replacing them with a ‘faster and more secure’ method.
Payments made by HMRC, for example Corporation Tax repayments, were made by payable order (cheque), this method will no longer be used and instead payments will be made by Bacs Direct Credit.
Repayments made by Bacs Direct Credit will be paid direct into a bank account.
In order to receive a repayment HMRC will need a bank sort code and account number (which must be in the name of the business or the name of an authorised nominee) each time an online return or amended online return is submitted.
Payments made to HMRC by Direct Debit are unaffected.
For further information about this or any other tax matter, contact Ellis & Co on 01244 343504.