COM126081 - Repayments / reallocations: repayment / reallocations work lists: overpayments review list (LOPU) (Action Guide)

To deal with cases on the ‘Overpayments Review List’ (LOPU) in a Banking Operations office or Debt Management office consider steps 1 - 22 below. The guide is presented as follows


Initial Action Step 1
Establishing why the case is on the work list Steps 2 - 4
Repayment Inhibited signal set by computer Step 5
Manual remission present Steps 6 - 7
LA - Enforcement Proceeding cases Step 8
Clerical Interest cases Step 9
Stranded Payment Steps 10 - 13
Company is insolvent Steps 14 - 15
You cannot establish the reason for the overpayment Step 16
Ceased / struck off cases Steps 17 - 21
Clearing the overpayment Step 22

Initial Action

1. Use Function LOPU (Overpayments Review Work List) to display the work list and
 
  • Select the entry that you want to work
 

And
 
  • Select the [View] button to see all available details for the case including the reason for entry onto the list and if the Small Repayment (Word 34kb) Limit field is set to ‘Y’
 

Note: The reason shown may reflect why the case was originally put onto the list and may not reflect any subsequent changes

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Establishing why the case is on the work list

2. Use the [Options] button to access the following functions on the overpaid AP to determine all of the reasons why the case may be on the list
 
  • VPPD (View Payment and Posting Details) to check if
 
 
    • The Pursuit Status for the company is RFI
 
    • There is a manual remission (Posting Type RMM) (including class 10)
 

And
 
  • DAPD (Display AP Details) to check if the
 
3. Use the [Options] button to access the following functions on the targeted AP to determine all of the reasons why the case may be on the list
 
  • VPPD (View Payment and Posting Details) to check if
 
    • The Pursuit Status is LA-ENF or RFI
 
    • There is a manual remission (Posting Type RMM)
 

And
 
  • DAPD (Display AP Details) to check if the
 
    • Clerical Interest Indicator (CII) is set
 
    • Repayment Inhibited - Automatic signal is set
4. Use the [Options] button to access
 
  • Function VTPR (View Taxpayer) to check the (This text has been withheld because of exemptions in the Freedom of Information Act 2000)company

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Repayment Inhibited signal set by computer

5. When the computer has set the ‘Repayment Inhibited - Automatic’ signal for 14 days only and you need to inhibit the repayment for longer than that
 
  • Use Function RAPP (Revise AP Pursuit) to set the Inhibit Repayment Only and Inhibit Reallocation and Repayment signals as appropriate for the AP

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Manual remission present

6. If there is a manual (not automatic) remission posting that was not entered by Banking Operations
 
  • Arrange for corrective action to be taken by the Debt Management office that entered the remission (Function VPPD (View Payment and Posting Details) screen COT215D)
7. If there is a manual (not automatic) remission posting that was entered by Banking Operations
 
  • Arrange for corrective action to be taken

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LA - Enforcement Proceeding cases

8. If another AP is underpaid and the LA-ENF signal is set
 
  • Contact the Debt Management office before taking any action to clear the overpayment

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Clerical Interest cases

9. In clerical interest cases where the CII is set
 
  • If there is a carry-back posting on the record (Posting Type ‘LOS’ or ‘ACT’) review the interest position.
 
  • In all cases
 
    • Raise the correct interest charge using Function RMIC (Raise Manual Interest Charge)
 
    • Advise the responsible office that the interest position is now correct and that it can proceed with the repayment of the overpaid tax

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Stranded Payment

10. Use Function VPPD (View Payment and Posting Details) summary and payments and postings screens
 
  • Find any outstanding COTAX liability for this company against which you can allocate the payment
11. If you find outstanding COTAX liability or an overdue AP
 
  • Use Function REAW (Direct Reallocation Within COTAX) to reallocate the payment to the correct AP
 

Note: If you reallocate to an overdue AP for which there is no charge use Function RAPP (Revise AP Pursuit) to inhibit automatic repayment and reallocation on the receiving AP first
12. If you cannot find a COTAX AP against which to allocate the payment
 
  • Review the payslip and any associated papers received with the payment
13. If the payslip or correspondence shows that the payment has been allocated to the wrong company record
 
  • Use Function TRCT (Trace Taxpayer) to find the correct COTAX reference
 
  • Use Function REAW (Direct Reallocation Within COTAX), option 02, to reallocate the payment to the correct company reference
 

Note: The case will be automatically deleted when the payment is reallocated
 
  • Write to the companies if appropriate to explain the actions you have taken

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Company is insolvent

14. If the amount is £10.00 or less and it is an insolvency case
 
  • Check for a request for this amount to be refunded. If so, go to Step 17
 
  • Check for any other outstanding liability. If so, go to Step 17
 
  • Otherwise, reallocate to Permanent Overpayment (POP). You can do this by using Function REAO (Direct Reallocation Out of COTAX) to put the overpayment into OAS (Word 28kb) Class 5 (This text has been withheld because of exemptions in the Freedom of Information Act 2000). For more information see Action Guide 'Reallocation Within COTAX - Banking Operations’ (COM122095)
15. If the amount is more than £10.00 and it is an insolvency case
 
  • Refer to the insolvency instructions at INS7212 and INS7213

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You cannot establish the reason for the overpayment

16. If you cannot establish the reason for the overpayment
 
  • Obtain the payment details to ensure that the payment was not allocated in error
 

Or
 
  • Contact the company to establish the correct allocation
 

And
 
  • If there is likely to be any delay after the 14 days period of automatic repayment inhibition, consider inhibiting the repayment further
 
  • Use Function RAPP to set the Inhibit Reallocation or Inhibit Reallocation and Repayment signals as appropriate

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Ceased / Struck Off Cases

17. When a ceased case appears on LOPU you must
 
  • Use Function VTPR (View Taxpayers Records) to check if the company is a UK incorporated company or not
 
  • Where it is a UK incorporated company go to step 18
 
  • Where it is not a UK incorporated company or is an unincorporated association go to step 21
18. If a UK incorporated company has been struck off, any unallocated payment or overpayment must be released as bona vacantia (Word 24kb) but only after set-off has been considered. You must use
 
  • Function VPPD (View Payments & Postings Details) to check all the AP records for any outstanding liabilities
 
  • Function REWD (Direct Reallocation Within COTAX) to reallocate part or all of the overpayment to an AP(s) with an outstanding liability
 
  • Where there are no outstanding CT liabilities check other heads of duty for outstanding liabilities
 
  • Where there are outstanding liabilities under another head of duty go to step 19
 
  • Where there are no other outstanding liabilities go to step 20
19. To reallocate the overpayment to another head of duty use
 
  • Function REOD (Direct Reallocation Out of COTAX - District) class 1 - Hold for Reallocation
 
  • Complete and issue form CT251 to the CT Unit in Cumbernauld giving instructions on where the overpayment should be reallocated to
20. Where there are no outstanding liabilities on COTAX or any other head of duty you should use
 
  • Function REOD (Direct Reallocation out of COTAX) Class 1 - Hold for Reallocation
 
  • Complete and issue form CT251 to the CT Unit in Cumbernauld ensuring that the correct bona vacantia recipient has been completed in the ‘Bona Vacantia’ section. See BVG1040 for a list of recipients
 
  • And where the overpayment is £250,000 or more ensure an R49 check is carried out and the appropriate details entered in the ‘Repayments’ section of the CT251
21. If a non UK incorporated company or unincorporated association has been struck off / ceased you must use
 
  • Function VPPD (View Payments & Postings Details) to check all the AP records for any outstanding liabilities
 
  • Function REWD (Direct Reallocation Within COTAX) to reallocate part or all of the overpayment to an AP(s) with an outstanding liability
 
  • Function DIRR (Direct Repayment) to repay an overpayment where no outstanding liabilities exist
 
  • Where you cannot reallocate and / or repay an overpayment, you must use REOD (Direct Reallocation Out of COTAX - District) to reallocate the overpayment to Permanent Overpayment (POP) into OAS (Word 28kb) Class 5 permanent overpayments (Word 33kb) 

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Clearing the overpayment

22. Once you know the correct allocation of the overpayment use Function
 
  • REAO (Reallocation Out Of COTAX) if the overpayment is to be reallocated to OAS. For more information see Action Guide 'Reallocation Out Of COTAX - Banking Operations’ (COM122096)
 
  • REAW (Reallocation Within COTAX) if the overpayment is to be reallocated to an outstanding liability within COTAX. For more information see Action Guide 'Reallocation Within COTAX - Banking Operations’ (COM122095)
 
  • DREP (Direct Repayment) to repay the overpayment
 

Note: Function DREP should only be used when the payment was made in error
  When the overpayment has been cleared the case will be automatically deleted from the work list

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