COM120002 - Repayments/reallocation: Overpayments: Cancelled Repayment Inhibit

Cancelled Repayment Inhibit 

When a repayment is cancelled, COTAX reverses the postings and recreates the overpayment. 

To stop any further automatic processing of the recreated overpayment, the cancelled repayment inhibition is set for all Accounting Periods (APs) involved in the repayment when: 

  • a Payable Order is cancelled using function CNPO (Cancel Payable Order) 

  • a Bacs repayment is cancelled by HMRC Payments 

You must examine cancelled repayments and make any amendments to COTAX records before you consider dealing with the repayment using function DIRR (Direct Repayment). 

For example:  there are occasions where, if the repayment and associated repayment interest is cancelled, COTAX will not recalculate the repayment interest correctly when repaying again.  In these cases you would need to calculate the repayment interest manually – see subject ‘Repayments/reallocations : non auto repayments’ (COM125094) – and reintroduce repayment interest as a District Set off (DSET), code no 50881 – see subject ‘Reallocations into COTAX – owning office’ (COM 122010). 

The ‘Cancelled Repayment Inhibition’ is unset: 

  • Automatically if the: 

    • Charge is increased (the AP becoming underpaid) 

    • AP becomes balanced 

  • Manually using function MAPS (Maintain AP Signals) in the District Office. 

It is recommended that you: 

  • do not unset the Cancelled Repayment Inhibition 

    Instead,

  • make any remaining repayments using function DIRR (Direct Repayment) when you are in a position to go ahead with the repayment 

Please note that:  Manually unsetting the signal could prompt the incorrect reissue of the cancelled repayment.