COM123030 - Repayments/reallocations: repayment cancellation: failed repayments, HMRC Payments office

Occasionally a repayment fails. The repayment may have been made by payable order or by Bacs.

Payable Order

The Repayment Section in the HMRC Payments office follows the OLDC (On-Line Data Capture) Guide ‘Cancellation of Payable Orders After Issue’ in any case when:

  • a payable order is returned
  • it is informed that a payable order has been lost, destroyed, or stolen
  • a company denies receiving a repayment by payable order that COTAX shows was made. Use function VPPD (View Payment and Posting Details) to check the repayment
  • it is necessary for whatever reason to cancel a payable order

Where you are notified by Finance Worthing that the payable order was intercepted and fraudulently cashed by a third person you should not enter the case on OLDC as the payable order has been cashed and OLDC will reject the case.

The Repayment Section in the HMRC Payments office handle:

  • returned uncashed payable orders
  • requests for fresh payable orders

When the company returns an uncashed payable order and asks for its allocation against other unpaid duties, check first that an operator in the HMRC Payments office made the repayment using function DREP (Direct Repayment).

If DREP was used, the repayment can be cancelled on the COTAX record and reallocated.

If DREP was not used:

  • do not cancel the repayment and do not reallocate it
  • refer the payable order to the CT office responsible for the repayment

When necessary, the Repayment Section asks HMRC Finance to cancel the payable order.

Do not amend the COTAX record until you receive confirmation from Finance to do so. They notify you:

  • electronically within a Controlled Access Folder (CAF) on spreadsheets ‘1913’ or ‘2601’ or
  • on forms RF1449A or RF1960

When you receive either the spreadsheet or form from Finance, see COM123050 for the action to take.

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Bacs

You should contact the COTAX Business Help Desk immediately (This content has been withheld because of exemptions in the Freedom of Information Act 2000)if you:

  • realise that incorrect Bacs details have been used to create a repayment
  • believe that a Bacs repayment has been credited to an account not belonging to the intended recipient

See:

  • COM123021 for a list of forms relevant to this subject
  • COM123031 for a list of functions to use in particular situations
  • COM123032 for legislation applying to this subject