COM125040 - Repayments / reallocations: non automatic repayments: direct repayment - banking operations

Where a payment in error is identified these must be repaid by Banking Operations.

The following types of payment are examples of payments in error

• Duplicate payment
• The payment was not intended for HM Revenue & Customs

Note: Repayment interest (Word 80KB) is not appropriate to these repayments.

Use Function DREP (Direct Repayment) to repay duplicate payments made by a company.

Payments not intended for HM Revenue & Customs are repaid through OAS (Word 28KB).

The Group Payment Teams use Function DREP (Direct Repayment) to make repayments in the course of their administration of Group Payment Arrangements. See 'Group Payment Arrangements' (COM96000) in the 'Payments' business area

In all other circumstances when repayment is necessary and the computer cannot handle it automatically

• Ask the responsible office to make the repayment

The Banking Operations office make repayments when payments are transferred to OAS for repayment by using

• Function REOD (Direct Reallocation Out Of COTAX) in an responsible office
• Function REAO (Direct Reallocation Out Of COTAX) in a Debt Management Office

Note: Do not use Function DREP to repay a duplicate payment when

• The company requests the issue of a payable order by hand

• The repayment is for £150,000 or more and cannot be made using BACS

Options within Function DREP 

There are four options within DREP

• Repay an overpayment
• Repay a specific payment
• Repay a specific amount
• Process Confirmed Repayments

For a list of functions to use in particular situations, see COM125041.