Repayments / reallocations: repayment cancellation: failed repayments - responsible CT office
Occasionally a repayment fails. The repayment may have been made by payable order or by Bacs.
Follow the OLDC Guide ‘Cancellation of Payable Orders After Issue’ in any case when:
- you receive a returned payable order
- you receive information that a payable order has been lost, destroyed or stolen
- a company denies receiving a repayment by payable order that COTAX shows was made. Use Function VPPD (View Payment and Posting Details) to check the repayment
- it is necessary for whatever reason to cancel a payable order, whether issued automatically by COTAX or following the use of Function DIRR (Direct Repayment).
Where you are notified by Finance Worthing that the payable order was intercepted and fraudulently cashed by a third person, you should not enter the case on OLDC as the payable order has been cashed and OLDC will reject the case.
Where appropriate, the responsible CT office asks HMRC Finance to cancel the payable order.
Once Finance confirm they have cancelled the payable order, ask your Repayment Security Authoriser (RSA) to use Function CNPO (Cancel Payable Order) to record the cancellation on the company’s COTAX record.
When you receive the relevant form from Finance, see COM123040 for the action to take.
You should phone the COTAX Business Help Desk immediately (This content has been withheld because of exemptions in the Freedom of Information Act 2000) if you:
- realise that incorrect Bacs details have been used to create a repayment or
- believe that a Bacs repayment has been credited to an account not belonging to the intended recipient.