UK Government’s threatening and DECEPTIVE STANCE on Bills of Exchange Payments to HMRC
Judge for yourself.
Published 13 May 2026
In December 2025, we sent a Bill of Exchange (BOE) to the office of the Chief Executive of HMRC in the City of London. After hearing nothing back, we followed up with another BOE on 6 May 2026. Again, silence.
Today, we noticed a warning on the HMRC website cautioning the public about claims that taxes can be paid or “settled” using instruments such as bills of exchange or similar documents. That timing prompted questions. Did our correspondence play any part in this? Or is something broader happening, with many more people exploring BOEs and other alternative instruments?
Our instinct is that we’re not alone. There appears to be a growing number of people re-examining long-standing financial instruments and asking whether they have a place in today’s payment landscape. HMRC’s notice suggests the authorities are paying close attention to these developments, and the tone of the warning – framing such attempts as invalid or potentially fraudulent, indicates a defensive posture.
Glossary of Terms
- Authority to Process: A document that should accompany each Bill of Exchange, available for download below, or from LipForms.com.
- Bill of Exchange (BoE): A written, unconditional order issued by one party (the drawer) directing another party (the drawee) to pay a specified amount to a third party (the payee), or to the bearer, either on demand or at a fixed future date, as governed by the Bills of Exchange Act 1909 (Cth).
- Case Law: Legal precedents established by court decisions, used to interpret and apply laws such as the Bills of Exchange Act 1909.
- Drawee: The party directed by the Bill of Exchange to make payment, typically a bank or an entity owing money to the drawer.
- Drawer: The party who issues the Bill of Exchange, ordering the drawee to pay the specified amount to the payee.
- FOI Requests: Freedom of Information requests made to government agencies (such as the Attorney-General) to access documents or confirm legal positions, including the applicability of the Bills of Exchange Act 1909.
- GovCorp: A shorthand term used to describe government and corporate entities making financial demands, such as taxes, fines, or bills.
- Legal Tender: Currency or coinage that must be accepted if offered in payment of a debt, as defined by the Currency Act 1965 (Cth) in Australia, including Australian dollar notes and coins. Refer to the Governor of the Bank of England desription of Legal Tender.
- Payee: The party to whom payment is directed in a Bill of Exchange, either a specified person or the bearer of the document.
- Paper Trail: A record of documents and communications, including copies of Bills of Exchange, mailing receipts, and correspondence, kept as evidence in legal or financial disputes.
Sources of good information on BOE’s
“All banks worldwide, in all nations, are required by the British Constitution, the Bills of Exchange Act 1882 – to honor bills of exchange. This Act defines the Bill of Exchange as a promissory note, which in turn creates all banknotes – known as cash value.
Furthermore, as established in Fielding & Platt Ltd v Selim Najjar (1969), Lord Denning stated:
“We have repeatedly said in this court that a bill of exchange or promissory note is to be treated as cash. It is to be honoured unless there is some good reason to the contrary.”
When issuing a promissory note, you are effectively settling the debt in full. Your signature, as trustee of your birth trust, endorses the note and thereby creates its value once the note has been delivered.”