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HMRC internal manual

COTAX Manual

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HM Revenue & Customs
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CT Pay and File: automatic and non-automatic repayments: early repayment - responsible office (Action Guide)

To deal with claims to early repayment for a CT Pay & File AP before an assessment is made, consider steps 1 - 15 below. The guide is presented as follows.

Claim for repayment before the normal due date for payment or after the normal due date but before the filing date and no return received Step 1
   
Claim for repayment after the normal due date and filing date have passed but before return or assessment charge posted Steps 2 - 3
Claim for repayment after the normal due date, return logged but the figures do not agree with the claim for repayment Steps 4 - 6
Claim for repayment after the normal due date, an assessment has been made but is not yet final Steps 7 - 10
Repayment already made and no repayment interest allowed Steps 11 - 15

Claim for repayment before the normal due date for payment or after the normal due date but before the filing date and no return received

  1.  Use function DIRR (Direct Repayment) to make the repayment. Repayment interest is not added to the repayment.

Claim for repayment after the normal due date and filing date have passed but before return or assessment charge posted {#IDAYGMVB}

  1.  Establish why the return cannot be made.

  2.  If you are satisfied with the explanation, use function DIRR (Direct Repayment) to make the repayment. Repayment interest is not added to the repayment as there is no return charge.

Claim for repayment after the normal due date, return logged but the figures do not agree with the claim for repayment {#IDA4HMVB}

  1.  Ask the company for information to satisfy you that the repayment is due.

  2.  If you are satisfied with the information provided, use function ARTA (Amend Returned Tax Amount) to reduce the CT payable by the amount of the repayment claimed.

  3.  Use function DIRR (Direct Repayment) to make the repayment.

Claim for repayment after the normal due date, an assessment has been made but is not yet final {#IDAXRMVB}

  1.  If the assessment is under appeal or investigation, ask the company for information to satisfy you that the repayment is due.

  2.  If you are satisfied with the information provided, use function HAPP (Handle Appeal) to standover the amount to be repaid.

  3.  Use function DIRR (Direct Repayment) to make the repayment.

10. If the assessment is under appeal and the company applies to the Tribunal for determination of the amount that is to be repaid, follow steps 8 and 9 after the application is heard and determined to make repayment if appropriate.

Repayment already made and no repayment interest allowed {#IDA3TMVB}

11. Recover the repayment if it was made by payable order and not yet banked.

12. Follow the On-Line Data Capture (OLDC) Guide ‘Cancellation of Payable Orders After Issue’ to obtain authority from Worthing to cancel the cheque and issue a fresh one (form FAO 2601).

13. On receipt use function CNPO (Cancel Payable Order) to cancel the payable order.

14. If the return is now logged, use function DIRR to reissue the repayment and COTAX will add repayment interest.

15. If the repayment was made by Bacs or has already been banked:

  • calculate the repayment interest due using function RINT (Request Repayment Interest Calculation)
  • use function DSET (District Set-Off) to record this amount on the COTAX record as an interest credit
  • repay the repayment interest using function DIRR (Direct Repayment). No spurious repayment interest will be added because you are repaying an amount of interest.

See COM122010 for information on DSET codes.