COM125030 - Repayments / reallocations: non automatic repayments: direct repayment - responsible office
Use Function DIRR (Direct Repayment) to deal with
- A repayment that the computer will not handle automatically and places on the LOPD (Overpayments List) or the ORUR (Overpayments Requiring Urgent Review List) work lists
- A repayment (if the reason is not payment clearing), that the computer will not handle automatically for 14 working days and places on the ORUR (Overpayments Requiring Urgent Review List)
- Any other repayment you wish to make directly out of COTAX where you do not require COTAX to automatically make the repayment. See ‘Overpayments: Automatic Process’
You can make repayments for up to ten APs for the same company in a single use of DIRR. The computer record is updated to take account of the repayments when you confirm (on screen COT171I) that you have completed all the repayments you wish to make for the company.
The computer will then issue a single BACS transfer or payable order, covering all these APs, providing you did not indicate that the repayment is to be issued manually.
Note: Overseas bank (not a UK branch of a foreign bank) accounts can have 10 digits. If you need to make a repayment by BACS to a bank account with more than 8 digits please telephone the CT Business Help Desk (This text has been withheld because of exemptions in the Freedom of Information Act 2000). You will need to tell them the bank sort code and account number and the Help Desk will give you the correct account number to use.
Repayment of specific amounts
You can use DIRR to repay the total or a lesser amount of the aggregate CT, interest and penalties paid by a company for an AP, until a tax charge is created by
- Logging a return or making an assessment, for a CT Pay and File AP
- A self assessment (Word 28KB) is recorded or a Revenue Determination (Word 29KB) is made, for a CTSA AP
It would be unusual to repay all of any apparent overpayment (Word 35KB) before the liability for an AP is settled. You may, however, wish to repay a lesser amount in response to a claim.
To do this you must use DIRR and set the signal on screen COT171J to show that you are making the repayment before the liability is finally established (‘formerly known as a ‘provisional’ repayment). The computer will then print an appropriate message on the company notification.
Note: You cannot use DIRR within 14 days of the Normal Due Date (Word 49KB) for an AP where the overpayment arises.
Overpaid late payment interest
The computer will deal automatically with any late payment interest (Word 27KB) (LPI) the company may have overpaid. If the liability for an AP is reduced, COTAX will automatically repay any excess late payment interest that the company has previously paid.
For a list of functions to use in particular situations, see COM125031.
For legislation applying to this subject, see COM125032.
