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HMRC internal manual

COTAX Manual

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HM Revenue & Customs
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Repayments / reallocations: repayment / reallocations work lists: cancelled / rejected repayments list (LCRP) (Action Guide)

To deal with cases on the Cancelled / Rejected Repayments List in the responsible office consider steps 1 - 13 below. The guide is presented as follows.

Initial action Steps 1 - 2
   
Repayment status is ‘rejected by Bacs’ or ‘card repayment cancelled’ Steps 3 - 5
Repayment status is ‘payable order cancelled’ Steps 6 - 10
Repayment stopped by Repayment Security Authoriser Steps 11 - 13

Initial action

1. Use function LCRP (Cancelled / Rejected Repayments List) to display the work list and select the entry that you want to work. Use the view button to see all the available details for the case.
   
2. Use the [Options] button to access function VPPD (View Payment and Posting Details) postings and payments screen and then select the repayment posting and select the [OK] button to view the status of a repayment (Word 45KB).

Repayment status is ‘rejected by Bacs’ or ‘card repayment cancelled’

3. If the repayment status is ‘rejected by Bacs’ or ‘card repayment cancelled’, use function VTPR (View Company Details) option Bank and Nominee details to check the Bacs details held.
   
  When a credit or debit card repayment has been rejected by the card issuer, the repayment must then be made by Bacs or payable order.
4. Contact the company or its authorised agent to:
  * obtain the correct Bacs details in writing or
  * confirm that the repayment should be made by payable order.
  Use function DIRR (Direct Repayment) to make a fresh repayment.
5. If the Bacs details used for the repayment are incorrect, use function BOND (Bank and / or Nominee Details) to enter the correct Bacs details.
  Use function DIRR (Direct Repayment) to issue a fresh repayment.
  The case is automatically deleted from the list.

Repayment status is ‘payable order cancelled’

6. Review the case notes in function VTPR (View Taxpayers Record) and any other information held, including whether appropriate authority from Finance Worthing has been received authorising the reissue/reallocation of the overpayment.
   
7. Once the authority to reallocate or reissue the repayment is held, see why the payable order was cancelled. If the reason was:
  * the overpayment can be reallocated, go to step 8
  * nominee details have now been supplied, go to step 9
  * company RLS, go to step 10.
8. Use either:
  * function REWD (Direct Reallocation Within COTAX) to reallocate the overpayment against another outstanding COTAX liability or
  * function REOD (Direct Reallocation Out Of COTAX) to reallocate the overpayment to OAS.
  Complete and send form CT251 to the CT Unit in Cumbernauld giving details of how the overpayment is to be allocated. See COM120100 for guidance on completing the CT251.
9. Where nominee details have been supplied, use function BOND (Bank and / or Nominee Details) to enter the nominee details.
  Use function DIRR (Direct Repayment) to issue a fresh payable order.
10. If the company is RLS and not struck off, obtain the correct address then issue a fresh payable order using function DIRR.
  If the company is RLS and struck off:
  * for unincorporated associations, use function REOD (Direct Reallocation Out of COTAX - District) to reallocate the overpayment to OAS Class 5 Permanent Overpayments (Word 33KB)
  * for incorporated companies, the overpayment must be treated as bona vacantia unless it relates to a payment made after the struck off date. Follow the guidance at COM126091 steps 50 to 57.

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Repayment stopped by Repayment Security Authoriser

11. Check the case notes and any other papers sent back to you by the Repayment Security Authoriser (RSA) explaining the reason for the cancellation of the repayment and find out if the overpayment is to be repaid again or reallocated.
   
12. If the overpayment is to be reallocated use either:
  * function REWD (Direct Reallocation Within COTAX) to make the reallocation to an outstanding liability on COTAX or
  * function REOD (Direct Reallocation Out Of COTAX) to make the reallocation to an outstanding liability outside COTAX.
  Complete and send form CT251 to the CT Unit in Cumbernauld giving details of how the overpayment is to be allocated. See COM120100 for guidance on completing the CT251.
  The case is automatically deleted from the LCRP work list when the whole of the rejected / cancelled payment is reallocated. When only part of the rejected / cancelled repayment is reallocated, use the [Delete] button to manually delete the case from the work list.
13. If the repayment is to be reissued use function DIRR (Direct Repayment) to make a fresh repayment.
  The case is automatically deleted from the list.