COM123001 - Repayments / reallocations: repayment cancellation: introduction

The Repayment Security Authoriser (with the Repayment / Reallocation Authoriser (Word 39KB) role) can cancel repayments and reallocations on:

  • REDR (Repayments For Authorisation List)
  • REAU (Reallocations For Authorisation List)
  • RPAU (Repayments For Authorisation List)
  • RLAU (Reallocations For Authorisation List).

See COM124000 onwards for full details of the Repayment Security Authoriser’s function in an office.

You can also stop a repayment by using Function SREP (Stop Repayment) before the cut off for processing of repayments, which is 4pm.

The cut off is normally the same day as the repayment is created, but it is 4pm the next working day if the repayment is created on a Saturday, Sunday or a Bank Holiday.

Where you use Function SREP successfully to stop a repayment, the case is entered on the ORUR (Overpayments Requiring Urgent Review) work list.

Offices have their own guidance for dealing with the cancellation of payable orders. It is in the OLDC Guide ‘Cancellation of Payable Orders After Issue’.

The material in the OLDC Guide is not repeated here. This section covers only the additional steps you need to take to maintain the company’s COTAX record.

The cancellation of Payable Orders is dealt with in the responsible CT office by the Repayment Security Authoriser or Banking Operations office as appropriate. Only HMRC Finance can arrange the cancellation of a Bacs repayment.

All cancelled repayments are entered on one of the following work lists:

  • LCRP (Cancelled / Rejected Repayments List)
  • LCRT (Cancelled Repayment List).

The work list entry shows the reason for the cancellation.

Cancelling a repayment on COTAX sets the Cancelled Repayment Inhibit (Word 33KB) signal for all APs included in that repayment. You can see the signal using Function DAPD (Display Accounting Period Details Signals).

For more information about these work lists see COM140000 onwards and COM126000 onwards.

Repayments can fail or be cancelled for a variety of reasons. It is important to deal with these cases urgently and correctly.