Repayments / reallocations: repayment cancellation: cancelled payable orders - banking operations office
When a payable order is cancelled, HMRC Finance posts a spreadsheet within the PORT AUTHORITIES COTAX Controlled Access Folder (CAF). The spreadsheet is named with the date the payable order was cancelled and either:
- 1913 or
When a payable order has been fraudulently cashed by a third party, HMRC Finance send one of the following forms to the responsible CT office:
The spreadsheets explain the reason for the cancellation and are the authority to make a fresh repayment.
Do not make a fresh repayment or arrange reallocation until you receive one of these forms from HMRC Finance.
When you receive one of the forms, you must record the cancellation of the payable order on the COTAX record if that has not already been done.
It may already have been cancelled on the COTAX record because the company returned the uncashed payable order to you and asked you to cancel it and reallocate the overpayment against other specific unpaid liabilities. See COM123030 for more information.
When you cancel a repayment on the COTAX record, it:
- reverses the postings and recreates the overpayments
- places the case on the LCRT (Cancelled Repayment List)
- automatically sets the cancelled repayment inhibit signal.
The overpayment should be:
- Reallocated against any unpaid liability or
- Repaid again.
For more information about this work list see COM126000 onwards.
The cancelled repayment inhibit is unset automatically if the AP becomes balanced, or if the charge is increased and the AP becomes underpaid.
You can view the signal using Function DAPD (Display Accounting Period Details) and ask the responsible CT office to unset it using Function MAPS (Maintain AP Signals).
If the correct destination of the payable order is in doubt, you need to establish the correct one before making a fresh repayment. If possible, suggest repayment by Bacs.