Paying the Collector in euros

By the end of February 2002, twelve of the European states will have converted completely to the euro. Booklet IR166, The Euro, gives details of how to pay the Collector in euros, a service that has been available since 1999. Now that the euro notes and coins are in circulation, the Revenue is able to accept payment of tax and NICs at some tax offices in euro notes, but not in euro coins. Payment may already be made by cheque, from a euro bank account, or through BACS or CHAPS.

Employers wishing to make payments through BACS or CHAPS must contact their Accounts Office in order to obtain the sort code and account numbers of their respective euro accounts. The telephone helpline numbers are: Cumbernauld: 01236 783500, Shipley: 01274 539630.

The Revenue will convert the payments into sterling and will not pass on the administrative costs for the conversion, unless it is a euro payment drawn on an overseas bank account. The sterling/euro exchange rate used for the conversion is that in force when the payment is presented by the clearing bank. Because of the exchange fluctuations, the amount after conversion to sterling may not be the exact amount due. If there is a shortfall, the employer will have to pay the difference subsequently. If there is an overpayment, the Revenue will make the repayment in sterling. In order to minimise the effect of exchange rate fluctuations, the Revenue recommends that payments be made through CHAPS. As long as the payment is received by the Revenue's bank account by 12:30 pm, the conversion is usually made on that same day.

Although euro payments are acceptable, all returns to the Revenue must continue to be in sterling and all tax calculations and repayments will be handled in sterling only.

The Revenue contact is Euro Preparations, Inland Revenue, Room 30, New Wing, Somerset House, Strand, London, WC2R 1LB. The e-mail address is euro.ir@gtnet.gov.uk . The address of the Revenue's website dedicated to the euro is
www.inlandrevenue.gov.uk/euro/index.htm .

General information for businesses about the euro is available on the Treasury website, at www.euro.gov.uk .
Payroll Briefing 217 - 4 February 2002