Manual Repayment: Outside COTAX - Owning Office

There are genuine risks in making manual repayments outside of COTAX and you must ensure that COTAX is updated to accurately reflect manual repayment action. You must use Function DIRR (Direct Repayment) on the same day as you make the manual repayment selecting the 'Y' option in Function DIRR for a manual repayment.

Any delays in using Function DIRR or recording an issued date in Function MIPO (Record Manually Issued Payable Order) which is later than the actual date of issue, will result in incorrect or additional repayment interest being calculated.

Offices must only issue manual payable orders in respect of CT overpaid for APs ending on or after 1 October 1993 under exceptional circumstances.

You cannot record a CHAPS (Clearing House Automated Payment System) repayment on COTAX. Repayments made by this method are therefore not reflected in Function VPPD (View Payments and Posting Details) and could lead to a double repayment being made.

CHAPS should not be used for CT repayments. However, in exceptional circumstances you can use CHAPS to make large repayments of Income Tax, Tax Credits or other duties that COTAX will not process. (This text has been withheld because of exemptions in the Freedom of Information Act 2000)

You should not record manual repayments of CT for APs ending on or before 30 September 1993 on COTAX.

You should not use COTAX to record manual repayments of CT for APs included in Contract Settlements. You must follow the guidance in the Enquiry Manual, EM9020 onwards.