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HMRC internal manual

COTAX Manual

HM Revenue & Customs
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Repayments / reallocations: repayment interest: automatic calculation of RPI - repayments

Where an overpayment arises and is to be repaid and all the following apply

  • Certain conditions (Word 40KB) exist on the overpaid AP
  • No conditions exist on the COTAX record to prevent an automatic repayment being made. For more information see section ‘Inhibit Automatic process’ COM120030 
  • Any automatic reallocations to outstanding liabilities on other APs have been made

COTAX will

  • Calculate any repayment interest (RPI) due to the expected date of issue of the repayment (not to the day when you created or authorised the repayment). The calculation will be on each individual payment making up the repayment that is entitled to repayment interest
  • Automatically make immediate repayment of the RPI along with the repayment
  • Issue a letter to the company explaining the situation. For more information see subject ‘Repayment & Reallocation Automatic Output’ COM120060 

Note: If the repayment is delayed beyond the expected issue date, COTAX recognises the fact. It issues an additional repayment of RPI to cover the gap, unless the amount of interest is less than £1. COTAX will not do this if there was no RPI due on the original repayment.

If you have a case for which further RPI is due and it has not been calculated automatically, contact the COTAX business help desk (This content has been withheld because of exemptions in the Freedom of Information Act 2000) for assistance.

When an overpayment is repaid or reallocated within COTAX any RPI will appear on the overpaid AP record as posting type ‘RIN’.

To view a ‘RIN’ posting

  • Use Function VPPD (View Payment and Posting Details) and access the Payments and Postings screen
  • To view the calculation select the ‘RIN’ posting and [OK] the screen

For a list of functions to use in particular situations, see COM128012.

For legislation applying to this subject, see COM128013.