INS6104 - Cotax
Insolvency Notification: District Office
Action sequence
If the District Office receives notification of an insolvency
on form INSOL200 note details on the company record. Reallocations
and repayments are inhibited for all APs.
If there is an overpayment (
INS6104a) on an
AP ending before the date of the winding up deal with the
overpayment in the following order
- reallocate to liabilities for any AP that ended
before the date of commencement of winding up
- reallocate to any liabilities outside COTAX for
any AP that ended before the date of commencement of winding up.
Ask the APS and Recovery Office to supply any details
follow the guidance at
INS2303.
Note: Do not allocate an overpayment to
liabilities for periods ending after the date of the winding up
order
The appointment of an administrator or administrative
receiver (in Scotland receiver) does not normally affect the
treatment of amounts available for reallocation or repayment.
However, there are some restrictions on the right of set-off once a
receiver is appointed and, exceptionally, the computer’s
automatic processes could produce an incorrect result.
Information relating to a Notice to file (
INS6104b) and
returns is provided in COM section Notices and Returns of the
Returns/Notices business area.
To deal with an insolvency notification on form INSOL200
received in the District Office, follow steps 1 - 8 as
appropriate:
- Use Function ACTP (Amend CT Payer Details) to
- Change the Solvency Status (
INS6104c) to
'I'
- Enter the date of commencement of winding up in
the Date of Liquidation field
Note: The computer will automatically amend the AP
record of the company
- Use function ACAP (Add/Amend Capacity Details) to
- enter the name and address of the liquidator,
administrator or receiver
- Use Function ACOM (Amend Communication Details) to
- enter the liquidator's name and address
Note: This means that computer output normally
addressed to the company at the Registered Office (RO) (
INS6104d) address
will be sent to the liquidator's address if the RO address is
RLS
- Use Function MRSC (Maintain Rept/Realloc Signals (Co)) to
- inhibit any Reallocations & Repayments being
made automatically for
all APs.
Dealing with an overpayment
- If there is an overpayment for an AP ending before the date of
the winding up order and an outstanding COTAX liability
- use Function REWD (Direct Reallocation Within
COTAX) to reallocate the overpayment to the outstanding charge
- If there is still an overpayment following the reallocation
within COTAX
- send memos to the APS and the local Recovery
Office asking for details of any liabilities outside COTAX for any
AP that ended before the date of winding up
- If you are advised of any liabilities outside COTAX for any AP
which ended before the date of winding up
- use Function REOD (Direct Reallocation Out Of
COTAX) to reallocate as much of the overpayment as is needed to
cover the arrear into OAS (
INS6104e)
- send a form CT251 (
INS6104f) to the
APS advising how to allocate the payment
- If there is still an overpayment following reallocations within
and out of COTAX
- send a memo to ICHU advising of the amount
available. ICHU will enquire whether other government departments
have a claim against which the overpayment can be set and advise
you accordingly. Only if repayment is appropriate use Function DIRR
(Direct Repayment) to repay any balance to the liquidator
Note: An overpayment is not allocated to
liabilities for periods ending
after the date of the winding up order
