COM126091 - Repayments / reallocations: repayment / reallocations work lists: overpayments list (LOPD) (Action Guide)

To deal with cases on the ‘Overpayments List’ in the Responsible Office consider steps 1 - 40 below. The guide is presented as follows


Initial Action Step 1
Establishing why the case is on the work list Steps 2
The overpaid or targeted AP has an Informal Discharge Steps 3 - 7
Inhibit Reallocation signal is set, Taxpayer Reallocation/Repayment inhibit set or Manual Inhibition set Steps 8 - 12
No Agreed Assessment Step 13
Tax or Penalty under appeal or Penalty or Tax Informally Stood over Step 14
RLS Signal is Set Step 15
Earlier or Later AP Due - No Tax Charge Steps 16 - 20
Reallocation/Repayment signal set joint notice Step 21
Enquiry in progress for this or another AP Step 22
No self assessment for the AP Step 23
Revenue determination automatically stood over Step 24
QP is Y/P for Next AP. Instalment May be Due Steps 25 - 27
Participator, GPP status is not cleared Step 28
Group participator overpayment Steps 29 - 31
Earlier AP Repayment Claimed on Return Step 32
Repayment Cancelled Step 33
Small Overpayment - No Auto Reallocation Step 34
Ceased / Struck Off Cases Steps 35 - 40

Initial Action

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

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Establishing why the case is on the work list

2. 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 29.5kb) 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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The overpaid or targeted AP has an Informal Discharge

3. Find out if the amount of tax which has been informally discharged has been included in an Investigation Settlement
4. If the amount of tax that was informally discharged has been included in an Investigation Settlement and you want to repay the overpayment
 
  • Use Function RINF (Record Informal Discharge) to cancel the informal discharge
 
  • Use Function DIRR (‘Repay a specific amount’ option) to make the repayment
 
  • Use Function RINF again to reinstate the informal discharge
5. If the amount of tax that was informally discharged has been included in an Investigation Settlement and you want to reallocate the overpayment to another COTAX record
 
  • Use Function RINF to cancel the informal discharge
 
 
  • On the same day send a fully completed form CT251 giving allocation details to Banking Operations
 
  • Use Function RINF again to reinstate the informal discharge
6. If you want to reallocate the overpayment to the Investigation Settlement
 
  • Use Function RINF to cancel the informal discharge
 
  • Use Function REOD to reallocate the overpayment to OAS
 
  • On the same day send a fully completed form CT251 giving allocation details to Banking Operations
 
  • Use Function RINF again to reinstate the informal discharge
 
  • The case will be automatically deleted from the work list when the overpayment has been cleared
7. If the amount of tax that was informally discharged has not been included in an Investigation Settlement but an informal discharge has nonetheless been created
 
  • Use Function RINF to cancel the informal discharge
 

The overpayment will be automatically repaid or reallocated and the case will be automatically deleted from the work list when the reallocation or repayment has taken place

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Inhibit Reallocation signal is set, Taxpayer Reallocation/Repayment inhibit set or Manual Inhibition set

8. Review the COTAX record to see why the signals in Function MAPS (Maintain AP Signals) or Function MRCS (Maintain Repayt / Realloc Signals (Comp)) were set.
  COTAX will automatically set the inhibit Reallocations and Repayments signal for a CTSA AP, if the ‘more than one return’ box was entered on the CTSA return. This is done to prevent an incorrect repayment/reallocation when the first return is logged and captured
9. Ensure that all returns have been logged and captured
10. Decide whether the signal can now be unset, you may need to check with the Debt Management office and Banking Operations office if COTAX notes indicate that they have an interest in the case
11. Unset the signal as appropriate using either
 
  • Function MAPS
 

Or
 
  • Function MRSC
 

The overpayment will be automatically repaid or reallocated and the case will be automatically deleted from the work list when the reallocation or repayment has taken place
12. If the inhibition is still required use Function LOPD to
 
  • B/F the case as required and make a B/F note showing the reason for the B/F

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No Agreed Assessment

13. Use Function LOPD to
 
  • Refer the case to the Inspector / Case Owner working it
 
  • B/F the case as required make a B/F note showing the reason for the B/F

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Tax or Penalty under appeal or Penalty or Tax Informally Stood over

14. Use Function LOPD to
 
  • Refer the case to the Case Owner working it
 
  • B/F the case as required and make a B/F note showing the reason for the B/F

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RLS Signal is Set

15. Ensure that action is taken to trace a new address and use Function LOPD to
 
  • B/F the case until a new address is found and the RLS signal is cleared
 

The case will be automatically deleted from the work list when the overpayment has been cleared. These cases will also appear on work list RRLS (Registered Office RLS List)

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Earlier or Later AP Due - No Tax Charge

16. Automatic reallocation or repayment will not take place where the Normal Due Date is
 
  • Passed
 

Or
 
  • Within the next 14 days
 

And
 
  • There is no tax charge
 

You should review the payment and posting details using Function VPPD (View Payments and Posting Details)
17. If the overpayment is due to a misallocation of a payment
 
  • Ask Banking Operations to reallocate the payment
18. If the overpayment is not due to a misallocation of a payment
 
  • Consider if a charge is likely to arise on the next AP
19. If a charge is likely to arise on the next AP
 
  • Reallocate the overpayment to the next AP using Function REWD
20. If a charge is not likely to arise on the next AP
 
  • Repay the overpayment using Function DIRR

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Reallocation/Repayment signal set joint notice

21. Box 145 CT600 (Version 2) has been completed to show that the overpayment is to be held and surrendered to another company under Section 102FA 1989. You should
 
  • Refer the case to an Inspector / Case owner to consider reallocating the overpayment to another company
 
  • Use Function LOPD to B/F the case as required and make a B/F note to showing the reason for the B/F

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Enquiry in progress for this or another AP

22. The Enquiry in Progress signal has been set in Function MAPS. You should
 
  • Refer the case to the Inspector handling the enquiry to advise them of the overpayment
 
  • Use Function LOPD to B/F the case until the enquiry is closed

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No self assessment for the AP

23. Where, for a CTSA AP a return has been logged but the self assessment has not been recorded. You should
 
  • Consider recording the self assessment or if necessary refer the case to the appropriate Inspector
 
  • Use Function LOPD to B/F the case until a self assessment is recorded

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Revenue determination automatically stood over

24. A return has been logged for an AP for which a Revenue Determination has previously been made. You should
 
    • Use Function DASS (Display Assessment Details) to identify the AP which carries the Revenue Determination that has been automatically stood over
 
And either
 
    • Use Function RAMA (Record / Amend Assessment) to record a self assessment
 
Or if a self assessment cannot be recorded yet
 
    • Use Function MAPS for the AP which carries the overpayment and select ‘Reallocations & Repayments’ from the drop down menu for the Manual Inhibitions field
 
And
 
    • Use Function LOPD to set a suitable B/F date
 
Note: When the self assessment is recorded you must use Function MAPS and select ‘None’ from the drop down menu for the Manual Inhibitions field

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QP is Y/P for Next AP. Instalment May be Due

25. This or the next AP has
 
  • No tax charge present
 

And
 
  • The QP signal set to 'Y' or 'P'
  You should
 
  • Look at the payment history for this AP for which the overpayment arises using Function VPPD
 
  • Decide whether all or part of the overpayment is intended for the next AP
26. If the overpayment is a misallocation contact Banking Operations and ask them to reallocate the payment
27. If there is no misallocation consider whether the overpayment should be repaid
  Notes:
 
  • The QP signal set to 'Y' on the overpaid AP will inhibit the overpayment from being repaid automatically
 
  • The QP signal set to 'P' on the next AP will inhibit automatic reallocation to that AP
 
  • Overpayments can be automatically reallocated to an earlier AP if an underpayment exists

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Participator, GPP status is not cleared

28. The company is
 
  • A participator a Group Payment Arrangement
 
  • Has an overpayment on this AP
 

And
 
  • The status of the group payment record is not cleared
 
Use Function LOPD to
 
  • Contact the Group Payment Team at Banking Operations
 
  • B/F the case as required and make a B/F note showing the reason for the B/F

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Group participator overpayment

29. Following the apportionment of payments received for a Group Payment Arrangement, a participating AP has become overpaid. Before being placed on work list LOPD, the system
 
  • Calculates credit/debit interest
 

And
 
  • Ensures that any late payment interest and penalties are cleared
 

If the resulting overpayment is solely credit interest it will be repaid automatically.
 
  • Check the COTAX record to see if there has been any amendment to the charge due
30. If necessary, contact the company to check why they have asked for the apportionment to be done as it has
31. If an overpayment still exists either
 
  • Repay the overpayment using Function DIRR
 

Or
 
  • Retain the overpayment pending any expected change to the assessment or tax charge
 

And
 
  • B/F the case as required and make a B/F note showing the reason for the B/F

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Earlier AP Repayment Claimed on Return

32. The AP is overpaid and the company has indicated on a return that a repayment is due for a previous year. You should
 
  • Ensure that all returns have been logged and captured
 
  • Repay or reallocate the overpayment

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Repayment Cancelled

33. The AP is overpaid because a repayment has been cancelled and the Cancelled repayment inhibit (Word 53.5kb) is set to stop automatic repayment. You should
 
  • Find out why the repayment has been cancelled
 
  • Refer to Steps 3 - 8 of 'Cancelled / Rejected Repayments List (LCRP)' (AG) (COM126071) for further instructions to clear this work list entry

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Small Overpayment - No Auto Reallocation

34. The AP is overpaid and the overpayment cannot be reallocated or carried forward to the next AP. You should
 
  • Check the Companies House website to see if the company is struck off or dormant
 
  • If dormant contact the company regarding the overpayment

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Ceased / Struck Off Cases

35. When a ceased case appears on LOPD you must use
 
  • 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 36
 
  • Where it is not a UK incorporated company or a unincorporated association go to step 39
36. If a UK incorporated company has been struck off, any unallocated payment or overpayment must be released as bona vacantia (Word 19.5kb) 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 37
 
  • Where there are no other outstanding liabilities go to step 38
37. 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
38. 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
39. 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
 
40.

When you have cleared the overpayment you will need to manually delete the case from the work list

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