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HMRC internal manual

Self Assessment Manual

Repayments: issue repayment: repayment of an overpayment (Action Guide)

When repayment of a credit balance is to be made from the SA system, follow steps 1 - 20 below. The guide is presented as follows

  Steps 1 - 2
   
  Steps 3 - 6
  Steps 7 - 14
  Steps 15 - 17
  Step 18

For details of how to access any of the SA functions, select ‘Index Of Functions’ on the left of the screen.

Initial action

| 1. | Use function VIEW STATEMENT to | || |   | * Select the most recent statement | |   | * On the most recent statement select the line number with the description ‘Before allocation to charges becoming due’ (Type TBAL) | |   | * Select the [Repay] button. You will then be taken to function ISSUE REPAYMENT FROM OVERPAID BALANCE | | 2. | In function ISSUE REPAYMENT FROM OVERPAID BALANCE | |   | * Enter details of the repayment to the taxpayer, agent or nominee | |   | * Specify the method of repayment (SAM110115). (If you are presented with the advisory message ‘Language set to Welsh’ the repayment method can only be by BACS or Local Office Payable Order. The payable order and / or payable order notification must be issued in Welsh. Only the Welsh Contact Centre (WCC) hold a stock of Welsh payable orders so you will need to send a completed R23 together with signed authority (and any additional instructions/papers) to
 
HMRC Welsh Contact Centre
Ty Moelwyn
Porthmadog
Gwynedd
LL49 9AB
 
Telephone number 0300 200 1900. Send e-mail referrals to WAM Box 906 | |   | * Enter the estimated issue date of the repayment where the repayment method is either | |   | * CHAPS or | |   | * Local Office Payable Order (includes cashcheques) | |   | Where the repayment method is CHAPS or Local Office Payable Order (includes cashcheques), although the repayment will be recorded immediately on the SA statement it will not be issued automatically through the SA system, this must be done manually. The procedures to be followed are detailed below |

Repayment by CHAPS

3. Notify HMRC Finance by FAX of the repayment details, following existing procedures
   
  When notification (by HMRC Finance) of the issue of the repayment is received the officer with the user role of Payment Processor or Repayments Authoriser will need to follow steps 4 - 6 below
4. Use function VIEW STATEMENT to
  * Select the statement showing the repayment
  * Select the repayment you want to view using the Select Line field
  * Select the [View] button. You will then be taken to function VIEW REPAYMENT
5. In function VIEW REPAYMENT
  * Select the [Confirm] button. You will then be taken to function CONFIRM MANUAL REPAYMENT
6. In function CONFIRM MANUAL REPAYMENT enter the following details
  * The actual date of issue of the repayment
  * The reference number supplied by HMRC Finance with a leading zero, where appropriate
  * Whether notification of the repayment was sent to the agent

Repayment by Local Office Payable Order

7. Prepare the Payable Order Request Form (PORF) and e-mail it to your authoriser / Front Line Manager (FLM)
   
  * The PORF can be found on SEES, Forms and Letters, MISC category
  * You must complete both sections 1 and 2
  * Once complete, you should save a copy of the PORF under your case reference number before emailing it to your authoriser / FLM
  * At the same time pass across any cases papers to your authoriser/FLM
8. On receipt of the PORF, the authoriser / FLM should check the case papers and SA record, if satisfied that the repayment is correct (correct payee, address, amount and so on), should authorise the repayment on the PORF and email it to the Repayment Authoriser (RALO)
  At the same time, pass across any cases papers to the RALO
9. On receipt of the PORF and cases papers, the RALO will
  * Perform security checks in line with current guidance
  * If satisfactory, will print a copy of the PORF to retain with the cases papers
  * Email the PORF to Payable Order Services (POS) in Worthing by selecting the [Post] button at the bottom of the form
  If the repayment is not satisfactory, the RALO will refer back to the authoriser with further instructions
  The RALO should arrange for any computation and / or repayment notification to be issued to the customer and keep the case papers / PORF until a unique payable order serial number is available on the Payable Order database
10. On receipt of the PORF, the DMB Banking Team will
  * Access the PORF
  * Print and issue the payable order according to the following schedule
  * Day 1, requests received prior to 16:00 hours processed
  * Day 2, requests received on day 1, input for printing
  * Day 3, Payable Order posted to customer
  * Produce and make available details of the payable orders issued daily through the PO database
11. The RALO will need to obtain the PO serial number from the PO database and this should normally appear on the database the day after submission of the PORF, or if the PORF was submitted after 16:00, the serial number will appear two days after submission.
  Once the RALO has the serial number, this will be entered on the copy of the PORF held by the RALO who will then pass it back to the caseworker with the relevant papers.
  An officer with the user role of Payment Processor or Repayments Authoriser will need then to follow steps 12 - 14 below
12. Use function VIEW STATEMENT to
  * Select the statement showing the repayment
  * Select the repayment you want to view using the Select Line field
  * Select the [View] button. You will then be taken to function VIEW REPAYMENT
13. In function VIEW REPAYMENT
  * Select the [Confirm] button. You will then be taken to function CONFIRM MANUAL REPAYMENT
14. In function CONFIRM MANUAL REPAYMENT enter the following details
  * The actual date of issue of the repayment
  * The Payable Order serial number
  * Whether notification of the repayment was sent to the agent

Repayment by Cashcheque (previously known as Giro Cheque)

15. The ability to issue a repayment by cashcheque has been withdrawn from 1 April 2010
   
  If a customer claims they cannot cash a payable order you need to
  * Be satisfied that the caller is the person who has received or is due to receive a payable order
  * Establish the reasons why the customer cannot cash a payable order
16. Inform the customer of the following options
  * A payable order can be paid into other bank or building society accounts that are held by the customer than are not current accounts
  * The customer may be able to open a new bank or building society account that accepts payable orders
  * A payable order can be issued to a nominee appointed by the customer who is able to receive the payable order on their behalf and who already holds a bank or building society account
17. Issuing a replacement payable order to a nominee
  * The customer MUST first return the payable order to HMRC and provide the name and address of their nominee
  * When the payable order is returned, it should be marked ‘cancelled’ in red ink
  * Use OLDC (cancel payable orders) to report the returned payable order to Finance (Payable Order Services) and request authority to reissue the repayment
  Further guidance on customers unable to cash payable orders can be found at RE3253 and RM5016

Repayment by BACS

18. If the repayment method is BACS, special action is required, in appropriate cases, to modify the information you are presented with. A full list of the banks / building societies concerned, and the action required, is available in subject ‘Special Action In BACS Repayment Cases’ (SAM110245)
   
  If a building society (including a former building society) is not included within that list, then repayment by BACS cannot take place. In such cases you should issue the repayment using an alternative method of repayment (SAM110115)
  Only the banks included within that list have been identified as requiring special action. All other banks will accept a BACS transfer without special action