COM122074 - Repayments / reallocations: non automatic reallocations: surrender outside S102 FA 1989 (Action Guide)
To reallocate a repayment to another company when S102 FA 1989 does not apply, consider steps 1 - 10 below.
1. |
Use Function MAPS (Maintain AP Signals) for the surrendering company and select ‘Reallocations & Repayments’ from the drop down menu for the Inhibitions field against the AP for which the overpayment (Word 35KB) will arise |
2. |
Create the overpayment on the surrendering company |
3. |
Use Function VPPD (View Payment and Posting Details) on the surrendering company to confirm the amount of the overpayment available for reallocation |
4. |
Use Function RINT (Request Repayment Interest Calculation) to calculate the repayment interest (Word 80KB) (RPI) due on the amount you are going to set off, and make a note of the total |
5. |
Use Function VPPD on the recipient company to check the amount of the unpaid liability |
6. |
Use Function REOD (Direct Reallocation Out Of COTAX) and choose the option ‘Reallocate a specific amount’ to put the overpayment into OAS (Word 28KB) |
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Note: Under no circumstances should Inspectors use the `Make a section 102 surrender' option in Function REWD (Direct Reallocation Within COTAX) to handle these cases. Only use that facility for genuine Section 102 surrenders |
7. |
Make the reallocation |
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Notes:
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Do not reallocate more than the amount of the unpaid liability
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The computer is not able to calculate RPI when you use this function, as it cannot know when the effective date of the reallocation will be
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8. |
Confirm the reallocation and make a note of the OAS reference number |
9. |
Use Function MAPS and select ‘None’ from the drop down menu for the Inhibitions field |
10. |
On the same day use the daily Envopak service to send a fully completed form CT251 to the Banking Operations Office. Make sure you |
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And if the combined total of tax and RPI exceeds the liability on the AP of the recipient company
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