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HMRC internal manual

COTAX Manual

Repayments / reallocations: non automatic reallocations: reallocation out of COTAX - responsible office (AG)

To reallocate a COTAX repayment to a liability outside COTAX, consider steps 1 - 9 below.

1. Use Function MAPS (Maintain AP Signals) to select ‘Reallocations & Repayments’ from the drop down menu for the Inhibitions field against the AP for which the overpayment will arise.
2. Create the overpayment.
3. Use Function VPPD (View Payment and Posting Details) to check the amount of repayment available for reallocation.
4. Determine exactly how much you want to reallocate from the COTAX record.
5. Use Function REOD (Direct Reallocation Out Of COTAX) and choose the option ‘Reallocate a specific amount’.
6. Make the reallocation.
  1. Do not reallocate more than the known liability against which the reallocation is being made.
  1. COTAX is not able to calculate repayment interest (RPI) when you use this function, as it cannot know when the effective date of the reallocation will be.
  1. The notes on the reverse of Form CT251 help you to calculate any RPI due in respect of the amount reallocated.
7. Confirm the reallocation and make a note of the OAS reference number.
8. Use Function MAPS and select ‘None’ from the drop down menu for the Inhibitions field.
9. On the same day email the CT251 to:
  * CT Unit, CT Ops Enquiry (DMB Banking) if you work outside of the LBS
  * CT Unit, LBS Enquiry (DMB Banking) if you work in the LBS.
  Note: Show on the form the amount of RPI you calculated at Step 6 above, as being applicable to the set off.
  Where a balance is available for repayment ask the Banking Operations Office to:
  * calculate RPI to the date of repayment
  * make the necessary repayment.