Repayments: issue repayment: cancellation of a repayment (Action Guide)
To cancel a repayment follow steps 1 - 5 below.
Also see section ‘Recover Over-Repayment’ where you need to recover an over-repayment from the taxpayer or a person who has received the repayment in error.
|1.||Establish at what stage the repayment is at within the repayment process. To do this use Function VIEW STATEMENT and select the relevant repayment, the VIEW REPAYMENT screen will show the current status of the repayment|
|* If the status is shown as ‘Draft’, ‘Selected’ or ‘Authorised’, go to step 2|
|* If the status is shown as ‘Issued’, go to step 3|
|2.||Where the status is shown as ‘Draft’, ‘Selected’ or ‘Authorised’ the Repayments Authoriser (RALO) in the office responsible for the processing activities should on the VIEW REPAYMENT screen select the [Cancel] button and then select the [OK] button. The repayment will be cancelled on the SA record and will not be sent to the SA repayment system for issue. For further information, see subject ‘Over-repayments: recovery by the SA system (Action Guide) at SAM112031.|
|You can then issue the repayment correctly, if appropriate, using Function ISSUE REPAYMENT FROM OVERPAID BALANCE|
|3.||Where the status is shown as ‘Issued’ and the repayment method is payable order, follow the Action Guide for cancelling a Payable Order/Repayment to confirm whether or not the payable order has been cashed.|
|Where the payable order has been cashed (or the repayment has been issued by BACS), you must not cancel the repayment on the SA record. Instead you should recover any over-repayment by correcting the Freestanding credit, amending the SA return or by using the DRIER procedures, whichever is appropriate|
|4.||Where the payable order has not been cashed, you should ask HMRC Finance for the authority to cancel and if appropriate, reissue the repayment. See step 3|
|Where authority from HMRC Finance is obtained, cancel the repayment on the record as in step 2 and reissue the repayment correctly if appropriate, using Function ISSUE REPAYMENT FROM OVERPAID BALANCE. If you need to recreate a Free Standing Credit, see SAM110080 onwards|
|Where authority from HMRC Finance is not obtained, follow the instructions as advised by HMRC Finance|
|5.||In all cases use Function MAINTAIN SA NOTES to enter an appropriate note|