COM122096 - Repayments / reallocations: non automatic reallocations: reallocation out of COTAX - banking operations office (Action Guide)

When using Function REAO consider steps 1 - 5 below. The guide is presented as follows.

Initial action Steps 1 - 3

Overpayments which cannot be accommodated on the company’s record Step 4

Consideration of repayment interest (RPI) Step 5

Initial action

1. Ensure one of the following conditions applies which makes you responsible for dealing with the reallocation.

  • The overpayment appears on the LOPU (Overpayments Review List) work list.

Note: Where the overpayment was created as the result of carry-back or S458 CTA 2010 (formerly S419(4) ICTA 1988) relief, ask the responsible CT office to deal with the overpayment.

  • The payment has been allocated to suspense record and appears on the LSUP (Payments in Suspense List) work list.

  • The payment was incorrectly allocated.

  • The bank notifies you of a returned cheque payment and lodgement adjustment. See COM91000 for more information.

2. If none of the above conditions apply, refer the correspondence or enquiry to the responsible CT office or Debt Management Office as appropriate.

3. Use Function VPPD (View Payment and Posting Details) to identify any other liability for the company or any AP that has passed the normal due date but no charge is on the record.

Where other liability is found, use Function REAW (Direct Reallocation Within COTAX) to reallocate the overpayment.

Where an AP has no tax charge and the normal due date has passed, check that the company agrees the proposed reallocation before proceeding.