COM122090 - Repayments / reallocations: non automatic reallocations: reallocations in a banking operations office
This subject is presented as follows.
General
Overpayments referred to Banking Operations office
Reallocations within COTAX Function REAW
Intra group surrenders under S963 CTA 2010
Incorrect credit for repayment interest (RPI) when the responsible CT office has reallocated money using Function REWD
General
You only need to deal with reallocations when COTAX cannot deal with them automatically and enters the cases on work lists LOPU (Overpayment Review List) or LSUP (Payments In Suspense List). For more information about these work lists see COM126000 and COM140000 onwards.
The functions for making reallocations are as follows.
- REAW (Direct Reallocation Within COTAX) to reallocate money:
- from one duty to another within a specified AP
- to one or more APs for the same company reference
- to a specified reference and AP.
Note: The ‘Reallocate a specific payment’ option lets you make a reallocation without attracting repayment interest (RPI).
- REAO (Direct Reallocation Out Of COTAX) to reallocate an overpayment to OAS.
Note: COTAX does not add RPI when you reallocate to OAS using this function.
- REAI (Direct Reallocation into COTAX) to reallocate an amount from OAS to the COTAX record.
You are responsible for making reallocations of:
- certain overpayments
- payments held in suspense
- incorrectly allocated payments
- returned cheque payments and lodgement adjustment cases. See COM91000 for more information.
Overpayments referred to Banking Operations office
When an overpayment is not dealt with automatically, COTAX refers the case to the Banking Operations office on work list LOPU (Overpayments Review List).
An overpayment is referred to the Banking Operations office in the following circumstances.
- The PRFI signal is set.
- Any of the following conditions exists on the overpaid AP:
- the case is RFI at the Banking Operations office
- a manual remission is present other than manual remissions in Insolvency and LA Enforcement Proceedings cases that are referred to the Debt Management Office
- the Clerical Interest Indicator (CII) is set other than in Insolvency and LA Enforcement Proceedings cases that are referred to the Debt Management Office.
- Any of the following conditions exists on the potentially receiving AP:
- the case is RFI at the Banking Operations office
- a manual remission (but not class 10 Interest only) is present other than remission in Insolvency cases that are referred to the Debt Management Office
- the CII is set other than in Insolvency cases that are referred to the Debt Management Office
- the normal due date has passed but no tax charge is recorded
- the case is LA Enforcement Proceedings.
Before you reallocate a tax overpayment, always check that the overpayment has not been caused by the incorrect allocation of a payment.
Reallocations within COTAX Function REAW
When you use Function REAW to make a reallocation within COTAX you can:
- choose to have an overpayment reallocated automatically by COTAX to one or more APs for the same COTAX reference
- choose to have an amount reallocated automatically by COTAX within a specified AP and COTAX reference
- specify how a payment in error or a ‘block payment’ reallocation is to be allocated to an AP and COTAX reference.
Intra group surrenders under S963 CTA 2010
When companies within a group elect for an overpayment to be reallocated from one company to another, they submit a claim to the responsible CT office. The responsible CT office considers the interest consequences of any reallocation when dealing with the case. You must not reallocate money from one company to another unless you have confirmed that the payment was allocated incorrectly.
Incorrect credit for repayment interest (RPI) when the responsible CT office has reallocated money using Function REWD
If you identify a payment that has been credited to the wrong AP yourself, or have one drawn to your attention by the Technical Caseworker, reallocate the money to the correct AP using the option ‘Reallocate a specific payment’ in Function REAW. This option moves the money without adding RPI.
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
If you discover a case where spurious RPI has been credited and repaid, refer the matter to your CT liaison team or line manager immediately.
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