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HMRC internal manual

COTAX Manual

Repayments / reallocations: non automatic reallocations: reallocation within COTAX - responsible CT office (Action Guide)

To reallocate an overpayment when you do not want COTAX to reallocate it using its normal rules, consider steps 1 - 12 below. The guide is presented as follows.

To reallocate an overpayment within COTAX                                     Steps 1 - 6

Payment credited to the wrong AP                                                         Steps 7 - 11

Payment reallocated incorrectly and RPI credited in error(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

To reallocate an overpayment within COTAX

Step 1.  Use Function MRSC (Maintain Repay / Realloc Signals (Company)) and select ‘Reallocations & Repayments’ from the drop down menu for the Inhibitions field before you create the overpayment.

Step 2.  Create the overpayment.

Step 3.  Use Function VPPD (View Payment and Posting Details) to check the postings on the receiving AP and decide how you want to reallocate the overpayment.

Step 4.  Use Function REWD (Direct Reallocation Within COTAX) and choose the option ‘Reallocate a specific amount’ to make the reallocation.

Step 5.  If the receiving AP is not overpaid following the reallocation, use Function MRSC to set select ‘None’ from the drop down menu for the Inhibitions field.

Step 6.  If the receiving AP is overpaid following the reallocation, leave the entry in the Inhibitions field in Function MRSC as ‘Reallocations & Repayments’ until the liability for the AP is determined.

Note: You can not make a superseded AP overpaid.

Payment credited to the wrong AP

Step 7.  When you identify a payment has been credited to the wrong AP, use Function MAPS (Maintain AP Signals ) and select ‘Repayments & Reallocations’ from the drop down menu for the Inhibitions field.

Step 8. Telephone the Banking Operations Office at once to explain what you have found and ask them to reallocate the payment to the correct AP.

Note: Do not attempt to reallocate the payment yourself. If you do so you will generate spurious repayment interest (RPI).

Step 9.  B/F the case for a short period.

Step 10.  On the B/F date, use Function VPPD to check if the reallocation has been made.

Step 11.  When the reallocation has been made and there is no need to inhibit reallocations and repayments for any other reason, use Function MAPS and select ‘None’ from the drop down menu for the Inhibitions field for the AP.

Payment reallocated incorrectly and RPI credited in error

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)