COM122001 - Repayments / reallocations: non automatic reallocations: introduction

COTAX handles most overpayments for an AP automatically providing certain conditions (Word 40KB) exist on the AP.

It automatically:

• calculates and adds any repayment interest (RPI) due
• calculates and adds any credit interest due
• calculates any debit interest in Quarterly Instalment Payment (QIP) cases
• recalculates any late payment interest (LPI)
• reallocates all or part of the total amount calculated against any outstanding liabilities within COTAX
• reallocates the appropriate amount if the company has:

• asked for an Inhibit Small Repayments (Word 34KB) standard value to apply
• specified an inclusive amount up to which repayment is to be reallocated
• not provided bank details and the overpayment is for £20 or less

• repays any balance.

COTAX does not make automatic reallocations when certain conditions exist on the overpaid AP or the potential receiving AP or if an operator has set signals inhibiting automatic processing.

See COM121010 for more information about the conditions that prevent COTAX from making an automatic reallocation.

COTAX inhibits repayment for 14 days for some repayments where there are certain conditions present and enters the cases on the work list ORUR (Overpayments Requiring Urgent Review List). These overpayments need to be reviewed urgently within the 14 day inhibition.

COTAX enters other overpayments that it cannot handle automatically on the following work lists.

• LOPD (Overpayments List).
• LOPU (Overpayments Review List).
• MRPL (Manual Repayments List).

See COM126000 for more information about the work lists.

Exceptionally, COTAX repayments can be made from OAS. This is after money has been moved to OAS by the:

• responsible office using Function REOD (Direct Reallocation Out Of COTAX) or
• Debt Management and Banking office using Function REAO (Direct Reallocation Out Of COTAX).