COM122050 - Repayments / reallocations: non automatic reallocations: reallocation within COTAX - responsible CT office
Use Function REWD (Direct Reallocation Within COTAX) to deal with
- A reallocation that the computer will not handle automatically and places on LOPD (Overpayments List) work list
- Any other reallocation that you wish to handle directly, rather than leaving it to the computer. This would include reallocating money in a specific way or dealing with a surrender under S102 FA 1989/Reg 9
You should not reallocate amounts against APs when a Debt Management and Banking office has an interest in the case, without their agreement.
Most surrenders under S102 FA 1989/Reg 9 will be of repayments of CT, and you handle these using Function REWD. For more information see subject 'S102 FA 1989/Reg 9 Surrender' (COM122020).
Incorrect payment of Repayment Interest (RPI) when REWD used to reallocate a specific amount
A payment intended for one AP may be credited to the record of an earlier AP in error. This may happen when the company has used the wrong payslip, for example. When the Inspector or the computer later reallocates the money to the correct AP the computer incorrectly credits the company with repayment interest (RPI). When you discover this you must take action to correct the position.
Incorrect reallocation of a Quarterly Instalment Payment (QIP)
Use Function MAPS (Maintain AP Signals), PRED (Prepare Revenue Determination) or RAMA (Record Amend Assessment) to set the Quarterly Payer signal to ‘Yes’ or ‘Potential’ for CTSA APs as soon as you suspect a company may have to make quarterly payments. If the company needs to make a payment you should contact Banking Operations and request them to issue a manual payslip.
Technical Caseworkers should not use Function REWD (Direct Reallocation within COTAX) to reallocate any incorrectly allocated QIPs as this causes an incorrect interest and Effective Date of Payment (EDP) position. Any cases with mis-allocated QIPs should be reported to Banking Operations at Cumbernauld or Shipley who will correct the payment position on the record.
For a list of functions to use in particular situations, see COM122051.
For legislation applying to this subject, see COM122052.
