COM125064 - Repayments / reallocations: non automatic repayments: early repayment CTSA APs - responsible office (Action Guide)
To deal with claims to early repayment for CTSA APs before a liability is finalised, consider steps 1 - 14 below. The guide is presented as follows
Not received a notice to deliver and not delivered a company tax return
| 1. |
Use Function DIRR (Direct Repayment) to make the repayment. (Repayment interest will not be added to any repayment made before the normal due date (Word 49KB), or after the normal due date but before a charge is recorded on the AP) |
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Made a return which is not under enquiry
| 2. |
Establish why the return cannot be amended or a proper claim to relief made |
| 3. |
If you are satisfied with the explanation, use Function DIRR (Direct Repayment) to make the repayment |
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Made a return which is under enquiry
| 4. |
Obtain a written request for repayment from the company |
| 5. |
Acknowledge the request in writing with a warning that if the company has to repay some of the repayment, interest may also be charged |
| 6. |
Use Function MAPS (Maintain Accounting Period Signals) to set the CDII signal to ‘Y’ on the AP under enquiry |
| 7. |
Use Function REOD (Reallocate Out Of COTAX) to reallocate the amount to be repaid into OAS 'Hold Pending Further Instructions (2)’ |
| 8. |
Send form CT251 to Banking Operations office asking for repayment to be made including any repayment interest to be added |
| 9. |
If the repayment leaves an amount unpaid on the AP under enquiry, informally standover the amount using Function HAPP (Handle Appeal) until the enquiry is closed |
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Repayment already made and no repayment interest allowed
| 10. |
Recover the repayment if it was made by payable order and not yet banked |
| 11. |
Follow the On-Line Data Capture (OLDC) Guide ‘Cancellation of Payable Orders After Issue’ to obtain authority from Worthing to cancel the cheque and issue a fresh one (form FAO 2601) |
| 12. |
On receipt use Function CNPO (Cancel Payable Order) to cancel the payable order |
| 13. |
If the return is now logged |
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- Use Function DIRR (Direct Repayment) to reissue the repayment and the computer will add repayment interest
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| 14. |
If the repayment was made by BACS or has already been banked |
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- Calculate the repayment interest due using Function RINT (Request Repayment Interest Calculation)
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- Use Function DSET (District Set-Off) to record this amount on the COTAX record as an interest credit
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- Repay the repayment interest using Function DIRR (Direct Repayment). No spurious repayment interest will be added because you are repaying an amount of interest
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