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HMRC internal manual

Self Assessment Manual

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HM Revenue & Customs
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Repayments: recover over-repayment: over-repayments: recovery by the DRIER procedures (Action Guide)

DRIER (Duty Repaid In Error Refunded) procedures.

If you are recovering an over-repayment, that cannot be pursued by the SA accounting system, consider steps 1 - 8 below. The guide is presented as follows

  Step 1  
     
  Step 2  
  Steps 3 - 4  
  Step 5  
  Steps 6 - 8  

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

If the repayment was made by payable order and the order has not been cashed or is returned

1. If the payable order has not been cashed or is returned before any application is issued, cancel the payable order using existing procedures
   
  * Use OLDC to notify Finance of the details of the cancelled repayment
  * Use function MAINTAIN SA NOTES (if an SA record exists) to enter an appropriate action note

Cancelling the repayment

| 2. | Existing clerical and supervisory procedures will continue to apply to | || |   | * The cancelling of a repayment | |   | * The obtaining of approval from Finance, Payable Order Services before a repayment by payable order is re-issued
 
Note: A repayment issued by payable order should only be cancelled on the SA system, using function VIEW REPAYMENT following instructions from Finance. This will ensure that the SA record is accurately maintained and avoid the possibility of a duplicate repayment being issued incorrectly |

If the repayment was made by payable order and the order has been cashed or the repayment was made by BACS or CHAPS

(This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
   
4. (This content has been withheld because of exemptions in the Freedom of Information Act 2000) the first steps to recover the over-repayment are to create a formal charge and request payment from the taxpayer. This is done by direct input of DRIER charges on the Strategic Accounting Framework Environment (SAFE) system by the identifying office
  * View SAFE to ascertain if a SAFE record exists for the customer
  * Where no SAFE record exists, create a Customer Account Record (CAR)
  * Use the Charge Type ‘DRIER IT’ (available in the drop down menu) to raise the DRIER charge on SAFE
  * Use ‘Print Payslip’ on SAFE to produce a SAFE PS1 using the 14 digit SAFE Charge Reference
  * Issue a notification to the taxpayer in the form of a letter advising
  * How the over-repayment has arisen
  * That a charge has been raised and payment is due within 30 days
  * That payment should be made to the Banking Operations Team, Shipley, using the enclosed payslip (SAFE PS1)
  Note: If for any reason a charge has been raised in the wrong amount, the charge must be cancelled and a new charge raised. These charges are not interest bearing but may in exceptional circumstances include interest calculated on the over-repayment to the date of creation of the R97 charge

If the taxpayer makes payment of the over-repayment following the initial applications

5. If the taxpayer repays the over-repayment following the issue of the letter or subsequent applications
   
  * The payment should be allocated to the DRIER charge, not the SA record
  * If payment is received in the identifying office, the charge record should be noted and the payment forwarded to the Miscellaneous Charges Unit

If the taxpayer does not respond after the initial applications or refuses to repay the over-repayment

(This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
   
7. If (This content has been withheld because of exemptions in the Freedom of Information Act 2000) after the applications by the Miscellaneous Charges Unit the charge still remains unpaid, the nominated Over-repayments Officer in the Miscellaneous Charges Unit will contact the identifying office to decide on the next course of action
  The next course of action will be one of the following
  * Recovery of tax only amounts by formal assessment (Section 29/30 TMA 1970). See subject ‘Over-repayments: Recovery by Assessment’ (SAM112010)
  * Recovery of money and combined tax and money amounts by referral of the charge to the
  * Debt Management office for proceedings through the County Court (not applicable to over-repayments to charities)
  * Enforcement Office (Belfast) for legal proceedings (NI)
  * Enforcement Section (Scotland) (ESS) for legal proceedings (Scot)
  * (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
8. If recovery action by Court / legal proceedings is the next course of action agreed, the responsible processing office will issue a stencil to the Debt Management office that deals with the taxpayer’s address (for Northern Ireland cases B2E and for Scotland cases ESS) in order to
  * Advise them to commence Court / legal proceedings
  * Request that they write to the taxpayer to warn of the intended course of recovery action
  * Ask them to supply the responsible processing office with the reference for the case at the Debt Management office (England and Wales), Enforcement Office (Belfast) (Northern Ireland) or Enforcement Section (Scotland)