Payment Allocation, Repayments and Overpayments: IRIS: Automatic Reallocations on the D/E Masterfile
Automatic Reallocation Where an overpayment arises as a result of an amendment to a Schedule D tax and/or Class 4 NIC charge, the overpayment will normally be
automatically reallocated against any other tax or NIC outstanding in respect of the amended assessment (see DMBM210275). Where a balance of tax or NIC remains outstanding, we automatically
- advise the taxpayer of the reallocation, where the amount being reallocated is more than £10
- request payment of the outstanding amount using the normal Demand cycle.
Automatic Reallocation not appropriateThe overpayment will not be automatically reallocated if the amendment is processed before 1 June following the end of the year of assessment and either
- an amount of £1,000 or more is to be reallocated to the second instalment
the tax etc is not yet due and the taxpayer has asked that no reallocation should be made. DMB Banking will
- be notified of the overpayment on the Daily OAS Statement, and
- deal with these cases clerically.
Note: Automatic reallocation of an overpayment is not used for Schedule E charges. Where appropriate, DMB Banking will send a report to the Processing Office.