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HMRC internal manual

Repayment Claims Manual

Over-repayments: R97 payment not made for recoverable over-repayment

If a copy of the receipt is not received within six weeks from the date the R97 was issued the RSO will tell the officer responsible for the case.

When notified as above take the following action.

Step 1

Write to the taxpayer reminding him/her of his/her undertaking to refund the over-repayment. Tell him/her to ignore your letter if he/she has recently refunded the amount due.

Base your letter on the following text.

`On ……. you agreed to refund the over-repayment of tax of £ ….. for the year 19 …… A form R97 was sent to you on ……. which explained how you should repay the amount due. Payment does not appear to have been received and I shall be pleased if you will pay the amount due as soon as possible. Please ignore this reminder if you have paid in the last few days.

May I point out that under the provisions of the Taxes Management Act 1970 the Inspector can recover the amount due by assessment. If, therefore, you do not pay this amount shortly I shall make an assessment on you to recover it. I hope, however, that this will not be necessary and you will soon refund the appropriate amount.’

Step 2

Allow taxpayer 21 days to reply.

Step 3

If no reply is received

  • pass the file with the claims papers to an Inspector who will tell you what assessment(s) to make. Give credit if necessary for any part of the over-repayment which may have been recovered
  • notify the RSO that the R97 charge has been cancelled or reduced. Show the reason for the cancellation or reduction as `formally assessed under TMA70/S29’.