COM123060 - Repayments / reallocations: repayment cancellation: cancelled BACS repayments

The cancellation of a BACS repayment by HMRC Finance creates entries on the following work lists

  • LCRP (Cancelled / Rejected Repayments List)
  • LCRT (Cancelled Repayment List)

The work list entry will show the reason for the cancellation. The cancellation also sets the Cancelled Repayment Inhibit (Word 33KB) signal for the AP concerned.

For more information about these work lists see section 'Repayment / Reallocation Work Lists' in this business area.

The appearance of a cancelled BACS repayment on one of the above work lists is the authority for the responsible CT office or Banking Operations to make a fresh repayment. You will not receive any paper authority.

BACS repayment cancelled

A BACS repayment may fail to reach the intended account because

  • The BACS computer rejects the transaction
  • The recipient bank or building society is unable to complete the transaction, for example, because the account details supplied by HMRC do not match any existing account
  • The Repayment / Reallocation Authoriser has used Function PRKR (Provide Risk Response) to reject a repayment selected for authorisation

In the first two cases, HMRC Finance cancel details of the repayment on the company’s COTAX record.

A local branch of a bank or building society receiving a credit through BACS will often be able to amend incorrect or outdated details. The repayment will then reach the right recipient, but the destination details shown on COTAX will be incorrect.

When you receive a notice of amended BACS details

  • File the notification prominently in the papers for the AP concerned
  • Make a note using Function NOTE that the BACS details shown on COTAX for the repayment concerned are different

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BACS repayment not received

If a company advises that a BACS repayment

  • Has not been received although the screen in Function VPPD (View Payment and Posting Details) shows that it has been made
Or
  • Has been credited to an incorrect account
    • Telephone the COTAX Business Help Desk (This text has been withheld because of exemptions in the Freedom of Information Act 2000) immediately for instructions

For a list of functions to use in particular situations, see COM123061.

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