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HMRC internal manual

COTAX Manual

Repayments / reallocations: non automatic repayments: direct repayment - the CT Unit Cumbernauld

Where a payment in error is identified these must be repaid by the CT Unit Cumbernauld.

The following types of payment are examples of payments in error.

  • Duplicate payment.
  • The payment was not intended for HM Revenue & Customs.

Repayment interest is not appropriate to these repayments.

Use function DREP (Direct Repayment) to repay duplicate payments made by a company.

Payments not intended for HM Revenue & Customs are repaid through OAS.

The Group Payment Team uses function DREP (Direct Repayment) to make repayments in the course of the administration of Group Payment Arrangements. COM96000 has more information.

In all other circumstances when repayment is necessary and COTAX cannot handle it automatically, ask the responsible office to make the repayment.

The CT Unit Cumbernauld make repayments after payments are transferred to OAS for repayment by using:

  • function REOD (Direct Reallocation Out Of COTAX) in an responsible office
  • function REAO (Direct Reallocation Out Of COTAX) in a Debt Management Office.

Do not use function DREP to repay a duplicate payment when the company requests the issue of a payable order by hand or the repayment is for £150,000 or more and cannot be made using Bacs.

Options within Function DREP

There are four options within DREP.

  • Repay an overpayment.
  • Repay a specific payment.
  • Repay a specific amount.
  • Process confirmed repayments.

See COM125041 for a list of functions to use in particular situations.