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HMRC internal manual

COTAX Manual

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HM Revenue & Customs
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Repayments / reallocations: repayment cancellation: cancelled Bacs repayments

When HMRC Finance cancel a Bacs repayment, COTAX creates entries on the following work lists:

  • LCRP (Cancelled / Rejected Repayments List)
  • LCRT (Cancelled Repayment List).

The work list entry shows the reason for the cancellation. The cancellation also sets the cancelled repayment inhibit signal for the AP concerned.

For more information about these work lists see COM126000 onwards.

The appearance of a cancelled Bacs repayment on one of the above work lists is the authority for the responsible CT office or Banking Operations to make a fresh repayment. You do not receive any paper authority.

Bacs repayment cancelled

A Bacs repayment may fail to reach the intended account because the:

  • Bacs computer rejects the transaction
  • Recipient bank or building society is unable to complete the transaction, for example, because the account details supplied by HMRC do not match any existing account
  • Repayment / Reallocation Authoriser has used Function PRKR (Provide Risk Response) to reject a repayment selected for authorisation.

In the first two cases, HMRC Finance cancel details of the repayment on the company’s COTAX record.

A local branch of a bank or building society receiving a credit through Bacs can often amend incorrect or outdated details. The repayment then reaches the right recipient, but the destination details shown on COTAX are incorrect.

When you receive a notice of amended Bacs details:

  • file the notification prominently in the papers for the AP concerned
  • make a note using Function NOTE that the Bacs details shown on COTAX for the repayment are different.

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Bacs repayment not received

If a company advises that a Bacs repayment has not been received although the screen in Function VPPD (View Payment and Posting Details) shows that it has been made, or has been credited to an incorrect account, phone the COTAX Business Help Desk (This content has been withheld because of exemptions in the Freedom of Information Act 2000) immediately for instructions.

See COM123061 for a list of functions to use in particular situations.