Payment allocation, overpayments and repayments: payment allocation: contents
This chapter provides guidance on the allocation of payments where the customer:
- is not already insolvent
- has more than one liability that is overdue, unpaid and not subject to appeal
- makes a payment that is not sufficient to satisfy unpaid liabilities in full, and
- does not specify how the payment should be allocated.
You should also follow these principles where there is an overpayment available for set off to give the customer the best advantage from the transaction.
This guidance does not apply to small reallocations generated within computer systems.