COM122043 - Repayments / reallocations: non automatic reallocations: surrender COTAX repayment to COTAX (Action Guide)

1.

Use Function MAPS (Maintain AP Signals) on the surrendering company’s COTAX record and select ‘Reallocation & Repayment’ from the drop down menu for the Manual Inhibition field against the AP before creating the overpayment (Word 35KB) 

2.

Create the overpayment on the surrendering company

3.

Use Function VPPD (View Payment and Posting Details) on the surrendering company to check if there is any overpaid late payment interest (Word 27KB) for the AP (shown as a minus figure of interest collectable). If there is make a note of the total interest overpaid figure

4.

Calculate how much of the total overpaid late payment interest relates to the surrendered amount using the formula A/B x C = R where

• A is the amount of CT refund surrendered to this recipient

• B is the total CT repayment available to the surrendering company

• C the total late payment interest overpaid (see Step 3 above)

• R is the figure to enter in the Related Interest field in Function REWD (Direct Reallocation Within COTAX)

5.

Use Function REWD on the surrendering company’s COTAX record to make the reallocation. Make sure that you enter the

• Recipient company’s UTR in the Receiving Company Reference field

• Date on which the joint notice of surrender is given to the Inspector in the Date of Surrender field

• Amount of the total interest overpaid that relates to the surrender amount as calculated at step 4 in the Related Interest field

6.

After using Function REWD to give effect to the surrender either

• Use Function MAPS on the surrendering company’s COTAX record and select ‘None’ from the drop down menu for the Manual Inhibition field on the AP

• Use Function REWD again to reallocate any balance, or Function DIRR (Direct Repayment) to repay any balance before using Function MAPS to select ‘None’ from the drop down menu for the Manual Inhibition field