COM124052 - Repayments / reallocations: repayment / reallocation authorisation: R49 check for large repayments (Action Guide)
To complete the R49 check consider steps 1 - 17 below. The guide is presented as follows.
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Action |
Steps |
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Steps 1 - 12 |
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Step 13 |
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Steps 14-16 |
R49 checks as per Part 6
Initial checks
Step 1 – Are parts 1-5 of the R49 form complete?
Check that parts 1-5 of the R49 have been completed correctly by the caseworker (band O and above). Where they haven’t, return the R49 to the caseworker to correct it
if the repayment is being made using OAS, check that the Intelligent Payment Processing (IPP) Single Form has been completed correctly, in particular that the correct Effective Date of Payment (EDP) has been used. Check that part 4 of the R49 contains the IPP code
if the repayment is being made from the SAFE system, check that the SAFE stencil has been correctly completed
Step 2 – Are you satisfied there’s no concern about the company?
Use function VTPR (View Taxpayer) to check the name and address of the company. In particular, use the [History] button to see if there has been a recent change of name and / or address and the current status of the company. You should also consider fraud hallmarks to reach a conclusion.
Step 3 – Are you satisfied there are no concerns about the agent?
Use function VTPR (View Taxpayer) to see if an agent is acting for the company and if so if there is any information or concerns about their accuracy or honesty.
You should also consider fraud hallmarks to reach a conclusion.
Step 4 – Does the company pass the live status checks?
Access the Companies House website to check the details held on COTAX are the most up to date and to ensure the company is Live.
If the company is in administration/liquidation you should not authorise a repayment without EIS approval (check COTAX notes). Otherwise Where they aren’t, return the repayment to the caseworker to update COTAX and correct the form.
Where the company is dissolved, the repayment should not be made to either the company or any of the former directors but should be treated as bona vacantia. See COM127001 for further guidance
Step 5 – Are you satisfied the repayment does not need to be offset against outstanding tax liabilities?
You should check COTAX notes and the case systems to identify if there is an open CT enquiry. If open, you must have approval from the enquiry owner before authorising any repayment (check COTAX notes). If not given, return to the caseworker named in Part 5 for action
You should check for any outstanding CT liabilities in other accounting periods. If outstanding liabilities are present on the taxpayers account, you must not approve the repayment without a satisfactory explanation at Part 2. If not given, return to the caseworker named in Part 5 for action
You may consider if there are outstanding liabilities in other tax heads (VAT & PAYE). Best judgement should be used on whether a reallocation is necessary. Consider if the company is a going concern & their historic compliance, the size of the liability in the context of the business, and how long the liabilities have been outstanding. If a reallocation is appropriate, you should return the R49 to the Caseworker (at Part 5) and ask them to reallocate all or part via an IPP form
Step 6 – Does a valid claim or surrender support the repayment?
The R49 form should give a reason for the repayment (at Part 2), and location of any relevant claims/surrenders (at Part 4). If it is linked to a claim or surrender, you must be satisfied there is a valid claim/surrender inside or outside a return.
Step 7 & 8
Use the COTAX system, the online return and any papers held to check the accuracy of the tax due & the repayment. In particular you should:
satisfy yourself that the repayment has not been made already. You must not authorise the issue of a duplicate repayment in error
ensure there are no invalid claims/reliefs
check that there are no miscalculations or transposition errors and that the interest calculations correctly reflect whether the company is a QIPs case
use functions VTPR and NOTE (Case Notes) to check if bank details taken during a phone call and that a BARS check has been completed and validated by the call handler
use function DRTN (Display Return Data) to check if the return has been filed online. Where it has, use View CT Returns or Illuminate to check the return details against the relevant assessment and ensure the assessment correctly reflects the CT computation
use function VPPD (View Payment and Postings Details) and check the payments and postings screen and check that the amount of repayment being made agrees with the entry on the R49 form (this should include all interest)
Step 9 – If a DSET repayment – are you satisfied it is appropriate?
Where there is a District Set Off (DSET) posting in function VPPD, check the posting has been correctly made and the correct EDP given. Where the DSET posting is for repayment of IT suffered at source, ensure it has not already been claimed through a set-off on a CT61.See COM122010 for more information
STEP 10, 11 or 12 should be followed depending on the method of repayment. This should be noted in Part 3 .
You can only approve the repayment if bank details were provided on the latest CT600 (check via ‘View CT Returns’) OR supplied by an authorised person within the last 12 months via the following methods:
•letter or fax: Must be in writing & signed on a company headed document
•email: Must be in writing from a known & trusted email address of the company
•phone: Must be supplied by phone with BARS checks complete
Step 10 – If BACS: is there evidence the BACs details are correct?
Use function VPPD (View Payment and Postings Details) and check the payments and postings screen and check that:
the payee details screen for the bank details shows the latest details provided. and
Check COTAX notes to ensure bank details have not been withdrawn.
iIf bank details were taken during a phone call, you should also check COTAX notes to ensure that a BARS check has been completed and validated by the call handler.
Step 11 – If CHAPS: Are you satisfied CHAPS is correct & appropriate?
You can only allow a repayment by CHAPS if a satisfactory reason has been given at Part 3.
Step 12 – If PO: Is the PO correct & approved by CT Process Team?
Repayment by PO is exceptional. You may only authorise a repayment via PO if approval has been given by the CT Process Team in Operational Excellence (COM124040). The location of evidence should be listed at Part 4.
Step 13 - Authorising the R49
If the repayment is being made via COTAX and you are satisfied that the repayment is correct, complete parts 6 & 7 of the R49 and pass to a Repayment Security Authoriser.
or
Where the repayment is to be made using OAS, please ensure the code is input at part 4 of the R49. Please also complete parts 6 & 7 of the R49 and pass to a Repayment Security Authoriser.
or
Where a SAFE stencil has been completed, enter your name and PID on the stencil and then complete parts 6 & 7 of the R49 and pass to a Repayment Security Authoriser.
Step 14 - Rejecting the repayment
If you find an error with the repayment, complete part 7, choosing option 2 repayment rejected, and complete the ‘explain your decision’ box with the reason why
Step 15
Ask the Repayment Security Authorise to cancel the repayment.
Step 16
Advise the caseworker of action taken.
If you suspect internal fraud do not advise the caseworker of your actions but report the incident to your Repayment Security Authoriser, who has access to guidance on how to report it.