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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: overpayments requiring urgent review list (ORUR) (Action Guide)

To deal with cases on this list in the responsible office consider steps 1 - 30 below. The guide is presented as follows.

Initial action Step 1
   
Establishing why the case is on the work list Step 2
Repayment stopped using function SREP Steps 3 - 4
X in the ‘more than 1 return’ box on CT600 Step 5 - 8
Allocation specified by taxpayer Steps 9 - 12
QP compatibility status query case Steps 13 - 23
Inhibit auto repayment set See MAPS Steps 24 - 29
Repayment due but potential penalty Step 30

Initial action

1. Use function ORUR (Overpayments List) to display the work list and select the entry that you want to work.
   

Establishing why the case is on the work list

2. Select the [View] button to see all available details for the case including:
The reason shown reflects why the case was originally put onto the list and may not reflect any subsequent changes.  
   

Repayment stopped using function SREP

3. Check COTAX notes and liaise with the Repayment Security Authoriser to find out why the repayment was manually stopped.
   
4. Consider whether the repayment can now be reissued, reallocated to another AP or retained.
  • If the repayment can now be issued, use function DIRR to issue a direct repayment.
  • If it is to be reallocated, use function REWD to allocate to another AP.
  • If the overpayment is to be retained pending any expected change to the assessment or tax charge, B/F the case and make a B/F note.
The case is automatically deleted from the work list if the payment is reallocated or repaid.

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X in the ‘more than 1 return’ box on CT600

  A return has been captured with the ‘Making more than one return for this company now’ box completed.
   
5. Check COTAX and CT View Return to find out if two returns have been submitted and whether both have been recorded on to COTAX.
6. Where two returns have been received but only one has been recorded:
  • use function LRTN (Log Return) to log receipt of the return as ‘e-filed with manual intervention’, complete the capture of the return and record the self assessment
  • use function REWD (Reallocate Within COTAX) to reallocate the overpayment
  • use function MAPS (Maintain AP Signals) to unset the ‘no reallocation/repayment’ signal.    
      7. Where only one return has been submitted, contact the company to find out when they will submit the other return.
      8. Use:
  • function MRSC (Maintain Repayment/Reallocation Signals) and amend the inhibition signal to repayment only
  • function ORUR to B/F the case until the second return is received.
If no other inhibition signals are set, the overpayment will be repaid 14 days after the payment was received. If those 14 days have expired or the payment was made by Bacs, debit or credit card, CHAPS or cash, the overpayment is repaid immediately.

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Allocation specified by taxpayer

9. Contact the company or agent to find out why too much has been paid and use function MAPS to select ‘reallocations & repayments from the drop down menu for the ‘manual inhibitions’ field.
   
10. If you need to make a repayment and you want COTAX to make it automatically, use function MAPS to select ‘none’ from the drop down menu for the ‘manual inhibitions’ field.

If no other inhibition signals are set, the overpayment will be repaid 14 days after the payment was received. If those 14 days have expired or the payment was made by Bacs, CHAPS or cash, then the overpayment is made immediately.

The case is automatically deleted from the work list.    
  11. If a reallocation is necessary to give effect to a surrender under Section 963 CTA 2010, enter a B/F date and note before referring the case to the HO Technical Team to use function REWD (Direct Reallocation Within COTAX).

For more information see COM122000 onwards.

The case is automatically deleted from the work list.    
  12. If you want to reallocate the overpayment out of COTAX:
  • use function REOD (Direct Reallocation Out Of COTAX) to move the overpayment to OAS
  • complete form CT251 which is available from SEES and then email the CT251 to
    • CT Unit, CT Ops Enquiry (DMB Banking) if you work outside LB or
    • CT Unit, LBS Enquiry (DMB Banking) if you work in LB.

See COM120100 for guidance on completing the CT251.

The case is automatically deleted from the work list.

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QP compatability status query case

  A return has been processed onto COTAX and the ‘QIP’ signal is not compatible with the amounts of tax and profits completed on the return and a potential repayment of credit interest is due to be made.
   
13. Refer the case to the HO Technical team to review as follows.

Review the QIP signal for this AP and the next.

  • If the QIP signal is correct for this AP (QIP is ‘N’) see step 14.
  • If the signal is incorrect for this AP (QIP needs changing to ‘Y’) see step 15.
For more information on the ‘QIP’ signal see COM95000 onwards.    
  14. Check if the CDII inhibit signal is set.

If it is, check that the CT Unit Cumbernauld  has raised the credit / debit interest charge on the AP.

If the credit / debit interest has not been raised on the AP, you should liaise with the CT Unit Cumbernauld to have the interest raised.

When the credit / debit interest charges have been raised on the AP, review the AP to see if an overpayment exists.

If the CDII inhibit signal is not set:

  • check that the correct amount of credit / debit interest has been calculated on the AP
  • review the AP to see if an overpayment exists.    
      15. If you want COTAX to repay the overpayment automatically, use function MAPS to select ‘none’ from the drop down menu from the ‘manual inhibitions’ field.
If no other inhibition signals are set, the overpayment will be repaid 14 days after the payment was received. If those 14 days have expired or the payment was made by Bacs, debit or credit card, CHAPS or cash, the overpayment is repaid immediately.    
  16. If you want to reallocate the overpayment to another AP, use function REWD to reallocate a specific amount or the whole of the overpayment.
  17. Delete the item from QPRW.
  18. Change the QIP signal to ‘Y’ for this AP and to ‘P’ for subsequent APs using function MAPS.
  19. Check that the credit / debit interest is recalculated on the AP.
  20. Review the AP to see if an overpayment exists.
  21. If you want COTAX to repay the overpayment automatically, use function MAPS to select ‘none’ from the drop down menu from the ‘manual inhibitions’ field.
If no other inhibition signals are set, the overpayment will be repaid 14 days after the payment was received. If those 14 days have expired or the payment was made by Bacs, debit or credit card, CHAPS or cash, the overpayment is repaid immediately.    
  22. If you want to reallocate the overpayment to another AP, use function REWD to reallocate a specific amount or the whole overpayment.
  23. If the credit / debit interest is not recalculated, check that the ‘CDII’ signal is set.

Where the CDII signal is set, the CT Unit Cumbernauld raise the credit / debit interest charge on the AP and any overpayment is automatically repaid or identified on a work list where an inhibition exists.

The item is automatically deleted from the QPRW work list.

You should take this action within 14 days of the case appearing on this work list. If you do not there is the risk that credit interest will be given incorrectly and COTAX will:

  • reallocate or repay the overpayment
  • delete the case from this work list
  • keep the case on QPRW.

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Inhibit auto repayment See MAPS

24.
  Check COTAX and any other records held for the reason for the inhibition. Use function VTPR (View Taxpayers Record) and check for any COTAX notes. Specifically, look for any note where Risk and Intelligence Service (RIS) have identified a risk. In these cases you should follow the instructions in the note.  
     
  25. Review the case to see if a repayment is due.
  26. Where a repayment is not due or your enquires will take longer than 14 days after the payment was received, you must use function MAPS and set the manual ‘inhibit repayment’ signal to prevent COTAX automatically repaying the overpayment after 14 days.
  27. If you want COTAX to make a repayment automatically, use function MAPS to select ‘none’ from the drop down menu for the ‘manual inhibitions’ field.

If no other inhibition signals are set, the overpayment will be repaid 14 days after the payment was received. If those 14 days have expired or the payment was made by Bacs, debit or credit card, CHAPS or cash, then the overpayment is repaid immediately.

The case is automatically deleted from the work list.    
  28. If a reallocation is necessary to give effect to a surrender under Section 963 CTA 2010, enter a B/F date and note before referring the case to the HO Technical team to use function REWD (Direct Reallocation Within COTAX).

For more information see COM122000 onwards.

The case is automatically deleted from the work list.    
  30. If you want to reallocate the overpayment out of COTAX:
  • use function REOD (Direct Reallocation Out Of COTAX) to move the overpayment to OAS
  • complete form CT251, which is available from SEES, and then email it to
    • CT Unit, CT Ops Enquiry (DMB Banking) if you work outside LB or
    • CT Unit, LBS Enquiry (DMB Banking) if you work in LB.

See COM120100 for guidance on completing the CT251.

The case is automatically deleted from the work list.

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Repayment due but potential penalty

  The company has indicated on the return that they are claiming a repayment but COTAX has identified a potential penalty.
   
30. Use function ORUR to enter a B/F date and note to show that you have referred the case to a CT Co-ordinator or Technical Caseworker to review the penalty position. The CT Co-ordinator or Technical Caseworker:
  • uses function PPEN to raise a penalty or
  • sets the NPR signal in function PPEN and then uses function MAPS to select ‘none’ from the drop down menu for the ‘manual inhibitions’ field. 

COTAX makes a repayment automatically.

The overpayment will be repaid 14 days after the payment was received. If those 14 days have expired or the payment was made by Bacs, debit or credit card, CHAPS or cash, then the overpayment is repaid immediately.

The case is automatically deleted from the work list.