PAYE91063 - Reconcile individual: overpayments: prepare and issue a manual repayment (Action Guide)

Where a manual payable order is required, follow steps 1 - 27 below. The Guide is presented as follows

Initial action Steps 1 - 6
Authorising Officer duties Steps 7 - 9
R400 checker / RSO duties Steps 10 - 14
Payable Order Control Officer duties Steps 15 - 20
Final actions Steps 21 - 27

Initial action

1. Check Contact/COP History for details of any existing payable order request form (PORF) and information affecting the year of review
2. Ensure that the case is appropriate for a manual payable order, see PAYE91062 
  Where possible, reconcile the relevant year on PAYE Service. Select [Cancel] to abort the reconciliation before issue and prepare a manual calculation for the customer
  Note: For mixed cases (where some years have been reconciled manually and some need to be reconciled under NPS) continue with steps 3 - 6 to prepare the manual repayment; do not issue any reconciliations on NPS. When the papers are returned to you by the Payable Order Control Officer (POCO) follow step 21 onwards under ‘Final actions’.
3. Reconciliation Summary
 
  • Where the year has not been reconciled previously - select ‘Inhibit Automatic Reconciliation’ for the year(s) being repaid
 
  • Set the No Repayment indicator and include a note in the additional notes box
4. Complete sections 1, 2 and 4 of the PORF - which can be found on SEES / Forms and Letters. The PORF should be completed as follows 
 

Section 1 - Payment details
 
  • Type of claim - select ‘Repayment’ or ‘Set off’ from the drop down menu
 
  • Case reference - this should be completed in the format Dist Ref/NINO (for example 123/AA123445A)
 

The PORF and the manual payable order database require a NINO. Where you cannot trace a NINO, the date of birth should be used as the NINO when completing the PORF. Do this by adding the letters ‘TN’ before the date of birth as the NINO prefix and ‘M’ or ‘F’ after the date of birth as the NINO suffix, for example TN260666F
 
Note: This NINO format should not be used on any correspondence with the customer. It is to facilitate the issue of the repayment only. 
 
  • Amount payable - enter the total amount to be repaid or set-off. When you tab to the next box the following message is displayed in a dialogue box
 

‘Please confirm the amount to be repaid’
 
    • Re-enter the amount due and select the [OK] button. If the amount is incorrect, select the [Cancel] button and enter the correct amount
 
  • Customer name (if not payee) - for use in nominee or set-off cases
 
  • Payee name - who the payable order will be made payable to (for set-off cases, use HMRC). The payee name will be displayed on the Pay line of the payable order
 
  • Payee address or set-off details
 
    • For repayments enter the payee address
 
    • For set-offs
 
    1. Enter the reference numbers (showing where the set-off is to be allocated form and to)
 
    1. An accurate effective date of payment (EDP)
 
    1. The interest indicator, if appropriate
 
    1. The EIS/ICHU office name and office numeral, if appropriate
 
  • Post code - for use in repayment cases. Enter the post code
 
  • Nominal code - for use in repayment cases. Select the code appropriate to the case from the drop down menu
 
  • Contact Centre tel. no. - enter the relevant telephone number aligned to your office in case of customer enquiry as DMB banking will not be able to answer any customer enquiries
 

Section 2 - Request prepared by
 
  • Enter your name, team number and DR storage reference
 

Section 3a - Request authorised by
 
  • To be completed by the Authorising Officer
 

Section 3b - Request posted by
 
  • To be completed by the R400 Checker
 

Section 4 - Supplementary information
 
  • Nature of claim and reason why Manual PO required - enter the reason for repayment, for example, ’FRE claim’ and the reason why a PORF is required, for example, ‘As per Newsboard xxx/xx’. It isn’t sufficient to say ‘Can’t be done on NPS’. In no NINO cases you must include the employer’s reference
 
  • If replacing a previously cancelled PO - enter the original PO number, the date it was issued and the date it was cancelled
 
  • Amount - enter the amount of tax being repaid only, do not include supplement
 
  • Interest / Supplement - enter the amount of supplement due
 
  • Total Amount Payable - enter the total amount to be repaid. This should match the entry you made at section 1
 
  • Any other information required - if you have prepared any calculations or letters that need to be issued once the PORF is authorised enter details here, for example, ‘Please issue enclosed letter’
  If the PORF covers more than one year you will need to provide a breakdown by year of the amount of repayment, the supplement due and total amount to be repaid each year
5. Print a copy of the PORF
6. Send the papers and email the electronic PORF (using the [Email to Authoriser] button) to your Authorising Officer and make a Contact History note stating the year(s) to which the repayment relates and the full amount of repayment due plus supplement. Supplement amounts must be stated separately

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Authorising Officer duties

  The Authorising Officers role is a Quality Check of the financial / numerical information that has been used to calculate the repayment and of the designatory data (name, address and so on) contained within the repayment. Whilst the Authorising Officer should cancel the repayment if there are any glaring errors outside of the normal QA/QC type check their main role is as a Quality Checker
7. Ensure that the case is appropriate for a manual payable order, see PAYE91062 
  If the case is not appropriate for a manual payable order the papers should be returned to the caseworker with a full explanation as to why a PORF is not appropriate and how and why the case should be dealt with using NPS
  Check all the case papers, computations, forms and so on, in order to establish
 
  • The repayment is for the correct amount
 
  • The repayment is going to the correct address
 
  • Any tax certificates associated with the claim, for example P60 or interest certificates, have been correctly cancelled
 
  • If the case is rejected and the papers passed back to the officer who prepared it, make a Contact History note. The email should be forwarded to the originator with a copy to the FLM and a rejection stencil placed on the front of the papers before they are returned for re-work
8. If the case has passed the checks, complete Section 3a of the electronic and paper PORF as follows
 
  • Request authorised by - enter your name and the date
9. Send the papers and email the electronic PORF (as an attachment) to the R400 checker

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R400 checker / RSO duties

10. Ensure that the case is appropriate for a manual payable order, see PAYE91062 
  If the case is not appropriate for a manual payable order the papers should be returned to the caseworker with a full explanation as to why a PORF is not appropriate and how and why the case should be dealt with using NPS
  Search for the case on the payable order database
 
  • If a duplicate is found, go to step 11
 
  • If a duplicate is not found, go to step 12
11. If a duplicate repayment is found
 
  • Delete the electronic version of the PORF. Under no circumstances select the [POST] button. Do not save a copy of the PORF on your z: or any shared drive
 
  • Send the papers back to the Authorising Officer with a note explaining the repayment has not been processed because it is a duplicate. Provide details of the original repayment
 
  • Stamp the paper copy of the PORF ‘Cancelled’ and enter details of the original repayment in Section 4 of the PORF
12. If a duplicate repayment is not found
 
  • Perform the security checks in line with current guidance
 
  • If the case passes the security checks, select [Save case]. This will check the database for duplicates a second time. If a duplicate is found, an advisory message is displayed
 
  • Record the Unique ID on the PORF
 
  • Complete Section 3b of the electronic and paper PORF by entering your name, telephone number and date
13. Submit the PORF by selecting the [POST] button at the bottom of the form
14. Three days after the PORF has been posted to DMB by the R400 checker
 
  • Access the DMB Payable Order database
 
  • Enter the case reference and date. The date will normally be the date the PORF was submitted plus 1 day. If the PORF was submitted after 4.00 pm, it will be the date of submission plus 2 days
 
  • Enter the serial number on the paper copy of the PORF held with the case papers
 
  • If you are unable to trace the payable order request on the database, or you have a specific enquiry relating to it, email DL-Cumbernauld Repayments Team
 
  • Pass the papers to the Payable Order Control Officer

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Payable Order Control Officer duties

15. Select the Accounting tile
16. Select the Financial Events Summary option
17. Select the Repayment Summary screen
18. Manually enter the payable order serial number for all the years the payable order relates to
19. Select [Submit] to save the details. If no PO serial number is entered you will be presented with an error message
20. Pass the papers to the AO who requested the manual PO

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Final actions

When the payable order details have been entered by the Payable Order Control Officer

  If this is a mixed case, for example some years have been reconciled manually and some need to be reconciled under NPS, deal with as follows, otherwise go to step 24
21. Remove the Inhibit Auto Reconciliation Indicator
22. Delete the No Repayment indicator. For bankruptcy cases you will need to reinsert this indicator when the NPS repayment has been issued
23. Deal with the NPS reconciliation. Note: When reconciling, include the years manually reconciled and trigger a multi-year reconciliation. This will ensure that the year(s) manually repaid are correctly recorded on the Reconciliation Screen as ‘Reconciled - Balanced’ and will take into account the tax manually repaid
  For cases that only include manual repayments
24. Select the Tax year and reconcile within Reconciliation Summary
25. The reconciliation result will be ‘Reconciled - Balanced' and will take into account the tax manually repaid
26. Remove the Inhibit Automatic Reconciliation indicator
27. Delete the No Repayment indicator, except in bankruptcy cases

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