COM122014 - Repayments / reallocations: non automatic reallocations: functions: reallocation into COTAX - responsible CT office (Action Guide)

To set off an overpayment from outside COTAX against an AP on the company’s COTAX record, consider steps 1 - 13 below. The guide is presented as follows


Set off an interest bearing amount Steps 1 - 5
Set off interest Steps 6 - 10
Set off a SAFE repayment against COTAX Steps 11 - 13

Set off an interest bearing amount


1. Use Function VPPD (View Payment and Posting Details) to check the payment and postings record for the AP against which you intend to make the set-off
  Note: If a colleague has already made the set-off there will be a payment posting ‘PYT’ shown in Function VPPD with ‘DSO’ in the ‘Notes’ column
2. If the set-off will make the receiving AP overpaid
 
  • Use Function MAPS (Maintain AP Signals) and select ‘Reallocations & Repayments’ from the drop down menu for the Manual Inhibitions field.
  Note: You can not make a superseded AP overpaid
3. Use Function DSET (District Set Off) to set off the overpayment. Make sure that you
 
 

See subject 'Reallocation Into COTAX - responsible CT office' (COM122010) for a table of Effective Dates of Payments
 
  • Select the duty type being set off from the drop down menu for the Type of Set-Off field. Do not enter the duty against which you are making the set-off in this field
 
  • Enter how you want the set-off to be allocated. This will be either
 
    • Specific amounts against Tax, Interest or Penalties
 
Or
 
    • Automatically allocated according to the normal rules. For more information see subject 'Automatic Reallocation' (COM120020) in this business area
 
Note: If you allocate the set off to tax, COTAX will calculate any Repayment Interest that is due for the following duty types
 
  • IT deducted at source
 
  • Construction Industry Scheme(CIS25/SC60) to 05/04/2002
 

COTAX will calculate any Repayment Interest that is due for the following duty types provided the EDP has been reached
 
  • Research & Development Tax Credit
 
  • Land Remediation Tax Credit
 
  • Tax Credits
4. Use Function VPPD to check the results by looking for a ‘PYT’ posting endorsed ‘DSO’ in the 'Notes’ column
5. If you used Function MAPS and selected ‘Reallocations & Repayments’ from the drop down menu for the Manual Inhibitions field at step 3 and you have repaid or reallocated any resulting overpayment
 
  • Use Function MAPS to select ‘None’ from the drop down menu for the Manual Inhibitions field

Top of page

Set off interest

6. Use Function VPPD to check the payment and postings record for the AP against which you intend to make the set-off
  Note: If a colleague has already made the set-off there will be a payment posting ‘PYT’ shown in Function VPPD with ‘DSO’ in the ‘Notes’ column
7. If the set-off will make the receiving AP overpaid
 
  • Use Function MAPS (Maintain AP Signals) and select ‘Reallocations & Repayments’ from the drop down menu for the Manual Inhibitions field. Note: You can not make a superseded AP overpaid
8. Use Function DSET to set off the interest. Make sure that you
 
  • Enter the EDP as ‘today’s’ date
 
  • Select ‘Repayment Interest’ or ‘Repayment Supplement’ as appropriate, as the duty type being set off from the drop down menu for the Type of Set-Off field
 
  • Allocate the amount to Interest otherwise COTAX will calculate Repayment Interest that is not due
9. Use Function VPPD to check the results by looking for a ‘PYT’ posting endorsed ‘DSO’ in the ‘Notes’ column
10. If you used Function MAPS and selected ‘Reallocations & Repayments’ from the drop down menu for the Manual Inhibitions field at step 8 and you have repaid or reallocated any resulting overpayment
 
  • Use Function MAPS to select ‘None’ from the drop down menu for the Manual Inhibitions field

Top of page

Set off a SAFE repayment against COTAX

11. Complete a SAFE Repayments stencil (SAFE 1) and give it to your SAFE user who will set the ‘No Repayment’ signal on SAFE if necessary and send the form to the SAFE team at Accounts Office Shipley.
 
  • You can find the SAFE 1 stencil at Excel > SEES > Forms and Letters > under the ‘SAFE’ category
12. Complete the stencil in full and provide the following specific information
 
  • Enter ‘Repayment Set-Off’ in the space given to provide the reason for your repayment
 
  • Give full details of the reason for the overpayment and if appropriate details of any repayment supplement/interest that is due including the ‘from’ and ‘to’ dates for all non S455 CTA 2010 (formerly S419 ICTA 1988) charges in this space
 
  • Where repayment interest is due for S455 use the specific box to provide the dates from which it should be calculated ‘from’ and ‘to’ in order that the SAFE team can correctly calculate the interest due on the set-off
 
  • Enter the UTR, AP number and duty type of where the overpayment is to be allocated and the EDP to be given to the set off to in the ‘Repayment Nominee’ box
  See subject ‘Reallocation Into COTAX responsible CT office’ (COM122010) for a table of effective dates of payment
13. The SAFE team will arrange to reallocate the set-off to the COTAX charge using OAS
  Note: You must not use function DSET to set off a repayment arising on a SAFE record, including CT61 charges, against COTAX. All overpayments arising in SAFE will be dealt with by the SAFE unit

Home | Main Contents | Manual Contents
Previous Page | Next Page | Top | Menu