COM124040 - Repayments/reallocations: repayment/reallocation authorisation: Large repayments - responsible office
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
- (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
- (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
The remainder of this subject is presented as follows
Repayment to debit or credit card
Repayment by Bacs
Repayment by payable order
Repayment to be made by using OAS
Repayment from the SAFE system
Repayment to debit or credit card
COTAX applies rules to decide whether repayment must be made to debit or credit card.
The conditions are that:
- the repayment is not for interest only
- the card payment was not made more than nine months before the date of the repayment
- the repayment does not exceed (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
- the repayment does not exceed the amount of the original card payment, less any repayments already made to the card
If the conditions are met, the repayment must be made to the original payment card and cannot be made by another method or to a nominee.
Repayment by BACS
You must try to make all repayments of(This content has been withheld because of exemptions in the Freedom of Information Act 2000) or more using BACS as it is the most secure and efficient way to make a repayment.
To make a repayment by Bacs, the latest bank details should always be used. Where bank details have been provided, these are stored in COTAX and you can view them in function VTPR (View Taxpayer Record) on the Bank and/or Nominee Details page. Bank and/or nominee details are updated automatically from the last original return to have been received, an amended return where the amendment has been automatically processed by COTAX, or clerically using function BOND (Bank and / or Nominee Details) from one of the following:
- a signed letter from the company or its authorised agent on headed notepaper
- an email from the overpaid company or its authorised agent from a known and trusted email address
- a telephone call where the details provided are for either the company's or its authorised agent’s account and have been successfully verified using BARS
Where the bank account details are not held, you must write to the company (CTS134) asking them to provide bank account details in a letter, email or by telephone. You must only make the repayment by payable order in exceptional circumstances where you have been unable to obtain bank account details.
Unless bank details are received on an online CT600 and automatically captured, you must verify the BACS details using BARS before updating COTAX using function BOND (Bank and/or Nominee Details). You must leave a note to state that the BACS details have bee BARS verified.
If you need access to the BARS system, ask your manager to assign the “BARS Front End Tool User” role to you in the HMRC AppStore.
Repayment by payable order
Bacs is the preferred method of repayment, However, if the customer insists on repayment by payable order you can issue that to the registered office address using the COTAX system.
If the repayment is greater than or equal to (This content has been withheld because of exemptions in the Freedom of Information Act 2000) the company (or their authorised agent) confirms in writing, on company (or agent) headed paper, the following:
- they are declining to provide BACS (or CHAPS) details and that a payable order is the only viable option
- they understand the increased risk of receiving a refund via payable order
- their bank account (or other) will accept a payable order for the value in £ sterling
Once you have the confirmation, you should email CT Process Team, Mailbox (OE) with a PDF copy, requesting authority to issue the payable order. You should use function NOTE (Case Notes) to record your request.
Once you have received authority, you should use function DIRR (Direct Repayment) and create the repayment in the normal way.
Please note that, if the total amount being repaid by payable order (PO) is (This content has been withheld because of exemptions in the Freedom of Information Act 2000) or more the fact the repayment may be made up of two or more payable orders does not remove the requirement to follow the R49 process.
Where the correct process has not been followed, the RSA will refer the case back to you or consider cancelling the repayment so the correct method of repayment can be used.
Repayment to be made by using Overpayment Accounting System (OAS)
Where you cannot make the repayment using the COTAX system, you need to use function REOD (Direct Reallocation Out of COTAX) to move the money into OAS so the repayment can be made by HMRC Payments.
Where the reallocation is made by using OAS, regardless of the amount involved, the caseworker is responsible for:
- moving the money into OAS
- completing form Intelligent Payment Processing (IPP) Form
Where the amount to be repaid is:
- less than (This content has been withheld because of exemptions in the Freedom of Information Act 2000)(This content has been withheld because of exemptions in the Freedom of Information Act 2000), they should send the 4-word authorisation code to the RSA to carry out the R400 security checks
- (This content has been withheld because of exemptions in the Freedom of Information Act 2000) or more, the caseworker must complete parts 1-5 of the R49 inputting the IPP form authorisation code to part 4, and send this to the appropriate R49 checker
Once the R49 checker has completed the R49 checks, they should complete parts 6 and 7 of the R49 and send the form, alongside the IPP authorisation code to the RSA to carry out the R400 security checks.
Once the RSA has completed the security checksthey must authorise/reject the IPP form as appropriate.
COM120100 has guidance on completing the IPP Form.
Please note that:
- The R49 checker must carry out their checks as soon as possible and once satisfied that the repayment can be made, immediately authorise the IPP form.
- If the R49 checker rejects the repayment, the reallocation must be reversed within 24 hours of this decision being made
Repayment from the SAFE system
Where a charge is held on the SAFE system, a repayment may arise following an amendment to the charge. COM23130 provides guidance on how to amend these types of charges:
- the caseworker must complete the IPP Form and pass it to their SAFE user to make the amendment on SAFE
- where the amount to be repaid is less than (This content has been withheld because of exemptions in the Freedom of Information Act 2000), they should send the stencil to HMRC Payments to carry out the security checks and make the repayment
- where the amount to be repaid is for (This content has been withheld because of exemptions in the Freedom of Information Act 2000)or more, thsi must be sent to HMRC Payments with written authority from the appropriate grade in line with the Segragation of Delegated Authority (SoDA)
Repayment from CTA archive
Where a charge is amended on the CTA archive. A repayment may arise. COM23130 provides guidance on these types of charges. The caseworker must send a completed SAFE(2) stencil to HMRC Payments.
Noting COTAX
In all cases, when the R49 is received and accepted by the RSA, they should use COTAX function NOTE to record the action taken.
See: