COM122083 - Repayments / reallocations: non automatic reallocations: reallocations in a debt management office (Action Guide)

To reallocate to OAS, consider steps 1 - 11 below. The guide is presented as follows.

Steps 1 - 7 Reallocating to OAS

Steps 8 - 10 Action by Section Leader

Step 11 Reallocation from a SAFE Charge or Local Law Cost

Reallocating to OAS

1. When a responsible CT office has an interest in the case, for example there is an informal discharge posting on the AP, or the reason for the overpayment is unclear:

  • contact the responsible CT office to discuss the matter
  • deal with the reallocation only if the responsible CT office has given you the authority to do so.

2. When you reallocate an amount to OAS, use the following classes.

  • Class 1 for amounts above £10 which are to be held for immediate reallocation.
  • Class 2 for amounts above £10 which are held for later reallocation.
    • Note: Reallocations from OAS may be made to other heads of duty.
  • Class 3 for amounts above £10 for later repayment.

3. Use Function REAO (Direct Reallocation Out Of COTAX) to make the reallocation.

4. Use Function VPPD (View Payment And Posting Details) to take a screen print of screen COT215E that shows the OAS reference number.

5. Send a memo to the Banking Operations office letting them know how to reallocate the amount transferred.

6. When the amount you reallocate to OAS is more than £150,000 and involves a class 2 or 3 overpayment, send a report with your memo explaining the circumstances.

7.  Pass the memo and the papers to the section leader.

Action by Section Leader

8. Confirm that the details in the memo and proposed allocation are correct by referring to the case papers and Function VPPD.

9. In a Class 1 case authorise the memo by date stamping it with the special ‘reallocation authorised’ stamp.

10. Send the papers to the Banking Operations office.

Reallocation from a SAFE Charge or Local Law Cost

11. When a payment has been accepted against a charge held by the Miscellaneous Charges Unit or a locally held law cost and an amount subsequently needs to be reallocated to COTAX:

  • reallocate using the register of overpayments (Book 19). For more information see the Collection (CM) Manual at CM8.507
  • treat the reallocation as a local office payment and transfer it to the Banking Operations Office using IVT INP201.