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HMRC internal manual

COTAX Manual

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Repayments / reallocations: overpayments: general: introduction

General {#IDANCQ4B}

An overpayment occurs on COTAX for an AP when payments made, or treated as made exceed the total of charges recorded on COTAX for:

  • tax payable
  • any late filing penalty
  • any interest charge on tax paid late.

COTAX can recognise an overpayment on an individual duty type (tax, interest or penalty) where the payments posted to that duty type exceed the charge posted for that duty type. COTAX recognises this even if the AP as a whole is not overpaid.

COTAX cannot recognise an overpayment where the AP has been cleared NDR (No Determination Required) and a payment is made against the AP, so these cases are entered on work list PNAR (Payments for APs Cleared NAR/NDR List).

Where a payment has been made against an AP but no charge has been recorded, this is treated as a payment on account and is not an overpayment.

COTAX usually repays or reallocates an overpayment automatically when an AP becomes overpaid providing certain conditions (Word 40KB) exist on that AP. See COM120010 for further information on overpayments COTAX can handle automatically.

Where COTAX cannot repay or reallocate automatically it enters the case on one of the following work lists.

  • LOPD (Overpayments List).
  • LOPU (Overpayments Review List).
  • MRPL (Manual Repayments List.

In addition COTAX inhibits repayments for 14 days for repayments that have certain conditions present and enters them on the ORUR work list (Overpayments Requiring Urgent Review List). It is important that you review cases entered on this list within the 14 day inhibit period.

Companies that are struck off

Certain actions on COTAX may lead to an overpayment being automatically repaid to a struck off company. To prevent that, you must use function MRSC (Maintain Repay / Realloc Signals (Company)) to inhibit repayments whenever you take an action that may lead to a monetary event.

Small overpayments of £20 or less

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See COM126000 onwards for further information about all these work lists.