COM122034 - Repayments / reallocations: non automatic reallocations: surrender non COTAX repayment to COTAX (Action Guide)

Set off Income Tax or payment of Tax Credit amount

Steps 1 - 5

Set off interest

Steps 6 - 10

Set off a SAFE repayment against COTAX

Steps 11- 13

1.

Use Function VPPD (View Payment and Posting Details) to check the payment and postings record for the AP of the recipient company 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, exceptionally, the set-off will make the AP of the recipient company overpaid

• Use Function MAPS (Maintain AP Signals) and select ‘Reallocations & Repayments’ from the drop down menu for the Manual Inhibitions field on the recipient company’s COTAX record

3.

Use Function DSET (District Set Off) to set off the overpayment. Make sure that you

• Enter the correct EDP (Word 41KB).

• 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 youallocate 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 Credit

4.

Use Function VPPD for the recipient company 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 Inhibition field at step 3

• Use Function MAPS again to select ‘None’ from the drop down menu for the Manual Inhibitions field on the recipient company’s COTAX record

6.

Use Function VPPD to check the payment and postings record for the AP of the recipient company against which you intend to make the set-off

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 on the recipient company’s COTAX record

8.

Use Function DSET on the recipient company’s COTAX record to set off 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

• 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

9.

Use Function VPPD on the recipient company’s COTAX record to check the results by looking for a ‘PYT’ posting endorsed ‘DSO’ in the ‘Notes’ column

10.

If you used Function MAPS to select ‘Reallocations & Repayments’ from the drop down menu for the Manual Inhibition field at step 8

• Use Function MAPS again to select ‘None’ from the drop down menu for the Manual Inhibition field on the recipient company’s COTAX record

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 in this space

• Enter the UTR, AP number and duty type of where the overpayment is to be allocated to and the EDP to be given to the set off in the ‘Repayment Nominee’ box

See subject ‘Reallocation Into COTAX responsible CT office’ (COM122010) for a table of Effective Dates of Payments

13.

The SAFE team will arrange to reallocate the set-off to the COTAX charge using OAS