Repayments / reallocations: repayment cancellation: failed repayments - banking operations office
Occasionally a repayment fails. The repayment may have been made by payable order or by Bacs.
The Repayment Section in the Banking Operations office follows the OLDC Guide ‘Cancellation of Payable Orders After Issue’ in any case when:
- a payable order is returned
- it is informed 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.
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.
The Repayment Section in the Banking Operations office handle:
- returned uncashed payable orders
- requests for fresh payable orders.
When the company returns an uncashed payable order and asks for its allocation against other unpaid duties, check first that an operator in the Banking Operations office made the repayment using Function DREP (Direct Repayment).
If DREP was used, the repayment can be cancelled on the COTAX record and reallocated.
If DREP was not used:
- do not cancel the repayment and do not reallocate it
- refer the payable order to the CT office responsible for the repayment.
When necessary, the Repayment Section asks HMRC Finance to cancel the payable order.
Do not amend the COTAX record until you receive confirmation from Finance to do so. They notify you:
- electronically within a Controlled Access Folder (CAF) on spreadsheets ‘1913’ or ‘2601’ or
- on forms RF1449A or RF1960.
When you receive either the spreadsheet or form from Finance, see COM123050 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.