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HMRC internal manual

COTAX Manual

From
HM Revenue & Customs
Updated
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Payments: processing payments: the payment record

The majority of Company Tax payments are made electronically, but where a payment is received in DMB Banking Shipley, it is processed in accordance with the instructions in the Debt Management and Banking manual at DMB200100. See COM90030 for guidance when a payment is received in any other HMRC Office.

Function VPPD (View Payment and Posting Details) provides all the information you need about payments and other accounting postings that appear on a COTAX record. It is essential that you review the payment position before taking any pursuit action.

The payments displayed on function VPPD (View Payment and Posting Details) screen D with a posting type (Word 73kb) of ‘PYT’ are:

  • bank lodgment payments
  • Bank Giro payments
  • Girobank payments
  • Bacs payments
  • CHAPS payments or payment made by Faster Payment (FP) methods
  • set-offs made by the CT responsible office.

COTAX also processes posting types ‘RFR’, ‘RTO’, ‘LOS’ and ‘ACT’ as payments so it can calculate credit interest, debit interest, late payment interest and repayment interest. You will see ‘ACT’ postings only on CT Pay and File APs.

The payment reference number a company should use to make a payment electronically is the one provided:

  • on the payslip attached to the payment application or
  • from the Your Tax Account accounting period overview screen.

COTAX applies the automatic payment allocation rules (Word 39kb) to all payments unless a duty type (Word 23.5kb) other than ‘A’ is entered when the payment is made.

If you are contacted by telephone about paying by Bacs or CHAPS, refer the call to DMB Banking Shipley.

SAFE handles payments for:

  • all APs ending before 1 October 1993
  • S419 ICTA 88 and S747 charges for APs ending on or before 30 June 1999
  • common non-COTAX assessment types listed at COM23133.

IRIS handles payments for overpayments allocated to OAS.

See:

  • COM90021 for a list of functions to use in particular situations
  • COM90022 for legislation applying to this subject.