COM126091 - Repayments / reallocations: repayment / reallocations work lists: overpayments list (LOPD) (Action Guide)
To deal with cases on the Overpayments List in the responsible office consider steps 1 - 57 below. The guide is presented as follows.
Action |
Stage |
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Step 1 |
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Step 2 |
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Steps 3 - 7 |
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Steps 8 - 13 |
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Step 14 |
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Tax or penalty under appeal or penalty or tax informally stood over |
Step 15 |
Step 16 |
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Steps 17 - 23 |
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Step 24 |
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Step 25 |
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Step 26 |
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Step 27 |
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Steps 28 - 35 |
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Step 36 |
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Steps 37 - 41 |
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Step 42 |
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Step 43 |
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Steps 44 - 47 |
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Steps 48 - 55 |
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Overpayment is for £100 or less and Bacs details are not held on COTAX |
Steps 56 - 57 |
| Welsh language case | Steps 58 - 63 |
Important
In any case where you decide to make a repayment you should always check that Bacs details have been received and recorded by viewing function VTPR (View Taxpayer Record). Where they haven’t and you have already been in contact with the company about the overpayment you should ask them for bank details so that the repayment can be made by Bacs. You can only accept bank details on 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
When you receive the details you should use function BOND (Bank and / or Nominee Details) and update COTAX with the details. 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.
However, if the last payment on the most recent AP included in a repayment was made by debit or credit card and the repayment falls within the rules for repayment to card, COTAX will overrule any direction you have given it to repay through Bacs or to a nominee. The repayment will be made to card and you must not try to make the payment any other way.
Initial action
1. Use function LOPD (Overpayments List) to display the work list and select the entry you want to work. If the Welsh language signal is set on the case, follow the appropriate steps below then go to step 58.
Establishing why the case is on the work list
2. Select the [View] button to see all available details for the case including the reason for entry onto the list and if the small repayment (Word 29.5kb) limit field is set to ‘Y’. The reason shown may reflect why the case was originally put onto the list and may not reflect any subsequent changes.
The overpaid or targeted AP has an informal discharge
3. Find out if the amount of tax which has been informally discharged has been included in an investigation settlement.
4. If the amount of tax that was informally discharged has been included in an investigation settlement and you want to repay the overpayment:
- use function RINF (Record Informal Discharge) to cancel the informal discharge
- use function DIRR (‘Repay a specific amount’ option) to make the repayment
- use function RINF again to reinstate the informal discharge
5. If the amount of tax that was informally discharged has been included in an investigation settlement and you want to reallocate the overpayment to another COTAX record:
- use function RINF to cancel the informal discharge
- use function REOD to reallocate the overpayment to OAS
- on the same day complete Intelligent Payment Processing (IPP) single form. See COM120100 for guidance on completing the IPP form.
- use function RINF again to reinstate the informal discharge
6. If you want to reallocate the overpayment to the investigation settlement:
- use function RINF to cancel the informal discharge
- use function REOD to reallocate the overpayment to OAS
- on the same day complete the Intelligent Payment Processing (IPP) single form
- use function RINF again to reinstate the informal discharge
The case is automatically deleted from the work list when the overpayment has been cleared.
7. If the amount of tax that was informally discharged has not been included in an investigation settlement, use function RINF to cancel the informal discharge. The overpayment is automatically repaid or reallocated and the case is automatically deleted from the work list when the reallocation or repayment has taken place.
Inhibit reallocation signal is set, taxpayer reallocation/repayment inhibit set or manual inhibition set
If the Welsh language signal is set, go to step 58.
8. Review the COTAX record to see why the signals were set in function MAPS (Maintain AP Signals) or function MRSC (Maintain Repay / Realloc Signals (Company). It is important to establish who set a manual inhibit and why so that a repayment is not made inappropriately.
COTAX automatically sets the ‘inhibit reallocations and repayments’ signal if the ‘more than one return’ box was entered on the return. This is to prevent an incorrect repayment/reallocation when the first return is processed on COTAX.
9. Use function VTPR (View Taxpayers Record) and check for any COTAX notes. Specifically, look for any note where Risk and Intelligence Service (RIS) have identified a risk. In these cases you should follow the instructions in the note.
10. Ensure that all returns have been processed onto COTAX.
11. Decide whether the signal can now be unset. You may need to check with the Debt Management office and Corporate Finance if COTAX notes indicate that they have an interest in the case.
12. Unset the signal as appropriate using either function MAPS or function MRSC. The overpayment is automatically repaid or reallocated and the case is automatically deleted from the work list when the reallocation or repayment has taken place.
13. If the inhibition is still required, use function LOPD to B/F the case and enter a suitable B/F note.
No agreed assessment
14. Use function LOPD to refer the case to a Technical Caseworker, B/F the case and enter a suitable B/F note.
Tax or penalty under appeal or penalty or tax informally stood over
15. Use function LOPD to refer the case to the CT Co-ordinator, B/F the case and enter a suitable B/F note.
RLS signal is set
16. Take action to trace a new address and use function LOPD to B/F the case until you find a new address and clear the ‘RLS’ signal. The case is automatically deleted from the work list when the overpayment has been cleared. These cases also appear on work list RRLS (Registered Office RLS List).
Earlier or later AP due - no tax charge
17. Automatic reallocation or repayment has not taken place because an overpayment exists on an AP and either an earlier or later AP is due or will become due within the next 14 days and there is no tax charge on that AP.
You should review the payment and posting details using function VPPD (View Payments and Posting Details).
18. If the overpayment is due to a misallocation of a payment, ask Corporate Finance to reallocate the payment.
19. If the overpayment is not due to a misallocation of a payment, consider if a charge is likely to arise on the next AP.
20. If a charge is likely to arise on the next AP, reallocate the overpayment to the next AP using function REWD.
21. If the payment does not appear to be appropriate to CT, check it is an overpayment and not a misallocated payment (step 18). View Your Tax Account and check for any outstanding PAYE or VAT debts. Where the payment is appropriate to either PAYE or VAT use function REOD (Direct Reallocation Out Of COTAX)
If it is a misallocated payment intended for another Head of Duty (for example PAYE, VAT or SAFE) use function REOD (Direct Reallocation Out Of COTAX) and complete the Intelligent Payment Processing (IPP) single form to instruct the Corporate Treasury Unit on how to deal with the amounts. See COM120100 for guidance on completing the IPP form. B/F the list entry for six weeks (to the nearest following Monday) and make COTAX Note of action taken
22. If there is no obvious reason for the overpayment, such as credit interest or the result of an amendment, contact the company to ask them why they have made the payment and where it should be allocated to.
23. If a charge is not likely to arise on the next AP or repayment has been requested, repay the overpayment using function DIRR.
If the overpayment is £100 or less, you should only repay where Bacs details are held. In all other cases you should reallocate to the next AP regardless of when it will become due.
Reallocation/repayment signal set joint notice
24. The relevant box on the CT600 has been completed to show that the overpayment is to be held and surrendered to another company under Section 963 CTA 2010 (formerly S102 FA 89). You should:
- refer the case to a Technical Caseworker to consider reallocating the overpayment to another company
- use function LOPD to B/F the case and make a B/F note to showing the reason for the B/F.
Enquiry in progress for this or another AP
25.
The Enquiry in Progress signal has been set in MAPS:
- if the overpayment is £500 or less set off to next available AP
- if overpayment is more than £50
You should:
- refer to the caseworker working the enquiry. Inform them that the overpayment is their responsibility in accordance with COG222175 and ask them to add the overpayment to the caseflow record. It should be made clear to the caseworker that if they want a repayment to be made they should reply to the CT Operations, National mailbox (BT&C) quoting reference otherwise CT Services will take no further action (unless FIS/ counter avoidance case - see next point)
- in FIS/Counter avoidance cases, offer the caseworker assistance in making a repayment or reallocation at the end of their enquiry
- ensure MUID and reference is given if contacting by e mail. If no caseworker PID is shown in COTAX notes open Caseflow from My Services, Corporate Services, Tools, CFS Auditor (R) to trace the name of the caseworker.
- if no COTAX notes exists and there is no Caseflow record, use function MAPS SA Enquiry details to enter a current date to close the enquiry and make the repayment
- use COTAX NOTE function to make a note of action taken
- B/F LOPD entry for 12 months using the BF note EIP PID of enquiry caseworker
No self assessment for the AP
26. A return has been logged but the self assessment has not been recorded. You should:
- consider recording the self assessment or if necessary refer the case to a Technical Caseworker
- use function LOPD to B/F the case until a self assessment is recorded
Revenue determination automatically stood over
27. A return has been logged for an AP for which a revenue determination has previously been made. Use function DASS (Display Assessment Details) to identify the AP with the revenue determination that has been automatically stood over.
Use:
- function RAMA (Record / Amend Assessment) to record the self assessment, or if the self assessment cannot be recorded yet
- function MAPS for the AP which carries the overpayment and select ‘reallocations & repayments’ from the drop down menu for the ‘manual inhibitions’ field
- function LOPD to set a suitable B/F date
When the self assessment is recorded you must use function MAPS and select ‘none’ from the drop down menu for the ‘manual inhibitions’ field.Top of page
QP is Y/P for next AP. Instalment may be due
28. This or the next AP has no tax charge present and the ‘quarterly instalment payment ‘ (QIP) signal is set to ‘Y’ or ‘P’. You should:
- look at the payment history for the AP for which the overpayment arises using function VPPD
- decide whether all or part of the overpayment is intended for the next AP
29. If the overpayment is a misallocation, contact Corporate Finance and ask them to reallocate the payment.
30. If there is no misallocation, check if the normal due date (NDD) has been reached and any credit and debit interest has been posted. Where it hasn’t, make a COTAX note and B/F the case for three days after the NDD. At the B/F date, review the case for any interest that may be due.
31. If the NDD has passed, check for arrears on earlier APs and where there are any, use function REWD to reallocate the overpayment.
32. If there are no arrears then view Your Tax Account and check for any outstanding PAYE or VAT debts. Where the payment is appropriate to either PAYE or VAT, use function REOD (Direct Reallocation Out Of COTAX) and complete the Intelligent Payment Processing (IPP) single form to instruct the Corporate Treasury Unit on how to deal with the amounts. See COM120100 for guidance on completing the IPP form.
33. If there is no obvious reason for the overpayment, such as an amendment to the charge, contact the company to ask them why they have made the payment and where it should be allocated to.
34. If a charge is not likely to arise on the next AP or repayment has been requested, repay the overpayment using function DIRR.
If the overpayment is £100 or less you should only repay where Bacs details are held. In all other cases you should reallocate to the next AP regardless of when it will become due.
35. If further guidance is required, refer the case to a Technical Caseworker.
The QIP signal set to 'Y' on the overpaid AP stops the overpayment being repaid automatically.
The QIP signal set to 'P' on the next AP stops automatic reallocation to that AP.
Overpayments can be automatically reallocated to an earlier AP if an underpayment exists.
Participator, GPP status is not cleared
36. The company is a participator in a Group Payment Arrangement and a payment has been allocated in error to a participator’s AP rather than the group payment record and the group payment period is not cleared.
Send an EForm to the Group Payment Team at Accounts Office to rectify the error:
- take any action as requested by the Group Payment Team
- B/F the case to check the case has cleared
- refer the case to a Technical Caseworker where further guidance is required
Group participator overpayment
37. Following the apportionment of payments received for a Group Payment Arrangement, an AP has become overpaid. Before being placed on work list LOPD, COTAX calculates credit/debit interest and ensures any late payment interest and penalties are cleared.
If the resulting overpayment is solely credit interest it is repaid automatically.
38. Where the overpayment is £5000 or less check for any arrears on previous APs or if a charge is likely to arise on the next AP, reallocate the overpayment to clear the arrears first and then to the next AP using function REWD unless the AP is a GPA participator.
39. If the overpayment cannot be reallocated within CT, view Your Tax Account and check for any outstanding PAYE or VAT debts. Where the payment is appropriate to either PAYE or VAT use function REOD (Direct Reallocation Out Of COTAX) and complete the Intelligent Payment Processing (IPP) single form, this advises HMRC Payments on how to deal with the amounts. See COM120100 for guidance on completing the IPP form.
40. If the overpayment is greater than £5000 then contact the company to confirm how the overpayment should be dealt with.
41. If an overpayment still exists either:
- repay the overpayment using function DIRR or
- retain the overpayment pending any expected change to the assessment or tax charge, B/F the case with a B/F note saying why
Where you need further guidance you should refer the case to a Technical Caseworker.
Earlier AP repayment claimed on return
42. The AP is overpaid and the company has indicated on a return that a repayment is due for a previous year. You should:
- ensure that all returns have been processed onto COTAX
- repay or reallocate the overpayment
Repayment cancelled
43. The AP is overpaid because a repayment has been cancelled and the cancelled repayment inhibit (Word 53.5kb) is set to stop automatic repayment. You should:
- find out why the repayment has been cancelled
- refer to steps 3 - 8 at COM126071 for further guidance to clear this work list entry
Small overpayment - no auto reallocation
44. The AP is overpaid and the overpayment cannot be reallocated or carried forward to the next AP. You should check COTAX and the Companies House website to see if the company is struck off or dormant.
45. If the company is dormant and is the result of credit interest or part of a payment made before the dormancy then check:
- COTAX for any outstanding arrears, and where there are any use function REWD to reallocate the overpayment to clear them
- Your Tax Account for any PAYE or VAT arrears and where there are any, use function REOD to reallocate the overpayment to OAS on the same day complete the Intelligent Payment Processing (IPP) single form. See COM120100 for guidance on completing the IPP form
46. If the company is shown as dormant and the overpayment is over £10 and is the result of a recent payment (post dormancy), consider making the company live and allocating the payment to the first live AP.
47. If the company has been noted as struck-off go to step 48.
Ceased / struck off cases
48. When a ceased case appears on LOPD you must use function VTPR (View Taxpayers Records) to check if the company is a UK incorporated company:
- where it is a UK incorporated company go to step 49
- where it is not a UK incorporated company or is an unincorporated association go to step 54
49. If a UK incorporated company has been struck off, the following must be released as bona vacantia after set-off has been considered:
- any unallocated payment made before the date of striking off
- any overpayment
If the payment was made before the date of striking off, go to step 50. If it was made after the date of striking off, go to step 53.
50. Use:
- function VPPD (View Payments & Postings Details) to check all the AP records for any outstanding liabilities
- function REWD (Direct Reallocation Within COTAX) to reallocate part or all of the overpayment to an AP or APs with an outstanding liability
Where there are no outstanding CT liabilities, check other heads of duty for outstanding liabilities:
- where there are outstanding liabilities under another head of duty, go to step 51
- where there are no other outstanding liabilities go to step 52
51. To reallocate the overpayment to another head of duty:
- use function REOD (Direct Reallocation Out of COTAX - District) class 1 - hold for reallocation
- complete the Intelligent Payment Processing (IPP) single form giving instructions on where the overpayment should be reallocated. COM120100 has guidance on completing the IPP form
52. Where there are no outstanding liabilities on COTAX or any other head of duty:
- use function REOD (Direct Reallocation out of COTAX) Class 3 - Repay
- complete the Intelligent Payment Processing (IPP) single form, ensuring that the correct bona vacantia recipient has been completed in the ‘Bona Vacantia’ section. See BVG1040 for a list of recipients and COM120100 for guidance on completing the IPP form.
- where the overpayment is £250,000 or more ensure an R49 check is carried out and all the relevant information is passed to the Authoriser
53. Where an unallocated payment was made after the date the company was dissolved, it is not bona vacantia as it was not an asset of the company immediately prior to dissolution.
If the payment was made because HMRC has pursued a debt after the date of dissolution, you must send it back to the person who made it with a covering letter. See the Bona Vacantia Guide at BVG1050 for more information.
If the payment was made voluntarily without any pursuit by HMRC, use:
- function VPPD (View Payments & Postings Details) to check all the AP records for any outstanding liabilities
- function REWD (Direct Reallocation Within COTAX) to reallocate part or all of the overpayment to an AP or APs with an outstanding liability
Where there are no outstanding CT liabilities, check other heads of duty for outstanding liabilities.
Where there are no outstanding liabilities under another head of duty, send the payment back to the sender. If any amount cannot be returned, remove all No-Repay / Reallocate signals. If overpayment is not automatically actioned, B/F the entry for 4 years using the BF note XAO.
54. If a non UK incorporated company or an unincorporated association has been struck off / ceased you must:
- use function VPPD (View Payments & Postings Details) to check all the AP records for any outstanding liabilities
- use function REWD (Direct Reallocation Within COTAX) to reallocate part or all of the overpayment to an AP(s) with an outstanding liability
- use function DIRR (Direct Repayment) to repay an overpayment where no outstanding liabilities exist
- where you cannot reallocate and / or repay an overpayment, remove all No-Repay / Reallocate signals. If overpayment is not automatically actioned, B/F the entry for 4 years using the BF note XAO.
55. The case is automatically deleted from the work list when the overpayment has been cleared.
Overpayment is for £100 or less and Bacs details are not held on COTAX
56. If the amount overpaid is for £100 or less and Bacs details are not held on COTAX:
- use function VPPD (View Payments and Postings Details) summary and payments and postings screens
- find any outstanding COTAX liability or future AP for this company against which you can allocate the payment
- use function REWD (Direct Reallocation Within COTAX) to reallocate the payment to the AP
If you reallocate to an overdue AP for which there is no charge, use function RAPP (Revise AP Pursuit) to inhibit automatic repayment and reallocation on the receiving AP first.
57. If you cannot find an AP against which to make a reallocation, use function DIRR and arrange to make a repayment.
Welsh language case
58. Where the Welsh language signal has been set to ‘W’ and / or the Registered Office address is that of the Welsh Customer Services, check if the EiP signal is set. If it is, go to step 25.
59. Where repayment is appropriate, see whether bank details are available. If they are, use function DIRR (Direct Repayment) to repay by Bacs. If not, go to step 60.
60. Use function DIRR. Change the signal ‘Do you want to issue this repayment manually’ from N to Y. This processes the repayment in COTAX but does not produce a payable order. Complete the function.
61. Go to VPPD screen COT215L and take a screenprint to show that the repayment is ‘awaiting manual issue’
62. Use function NOTE to show that you are emailing the screenprint and any relevant paperwork to: Cymraeg, Gwasanaeth (CDIO/HMRC Welsh Customer Services). Please use Welsh CT case as the subject title on your email.
If you have to send items by post, please send them to:
CT Section
Gwasanaeth Cwsmeriaid Cymraeg CThEF
HMRC
BX9 1ST
They will use function MIPO to issue a Welsh payable order to the company.
63. Make sure automatic repayments continue to be inhibited.