Repayments / reallocations: overpayments: general: repayment and reallocation automatic output
Whenever COTAX makes a repayment to debit or credit card, or by Bacs or payable order, it produces output telling the company what has happened.
However, when a reallocation is made, whether between APs or to another company, COTAX does not issue any output.
When COTAX makes repayment to debit or credit card, a Bacs repayment or issues a payable order, separate notifications are sent to each of the following.
- The payee, that is the company or nominee.
- The company, if repayment is made to a nominee.
- The company agent if an agent is acting and the 64-8 signal has been set.
The notification provides a simple computation of the repayment, except when sent to a nominee. For an automatic repayment, it includes details of any automatic reallocation made at the same time.
COTAX issues the notification at the same time as the debit or credit card or Bacs system accepts the credit.
Where the repayment is made by payable order, the notification is attached to the payable order.
Repayment notifications carry the details of the company’s responsible office and so appear to have been initiated in the responsible office. This happens whether the repayment is created by the operator using an online function, automatically by COTAX, or was initiated by the CT Unit Cumbernauld.
The notification indicates that a repayment of a specific amount is provisional if you have set the relevant signal in function DIRR (Direct Repayment).