COM124040 - Repayments/reallocations: repayment/reallocation authorisation: Large repayments - responsible office
Source: gov.uk (2025-12-09)


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(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

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The remainder of this subject is presented as follows

Repayment to debit or credit card (#IDAHVDOF)Repayment by Bacs (#IDAIVDOF)Repayment by payable order (#IDAPWDOF)Repayment to be made by using OAS (#IDAIWDOF)Repayment from the SAFE system or CTA archive (#IDAZAFOF)

Repayment to debit or credit card

COTAX applies rules to decide whether repayment must be made to debit or credit card.

The conditions are that:
- the repayment is not for interest only
- the card payment was not made more than nine months before the date of the repayment
- the repayment does not exceed (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
- the repayment does not exceed the amount of the original card payment, less any repayments already made to the card
If the conditions are met, the repayment must be made to the original payment card and cannot be made by another method or to a nominee.

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Repayment by Bacs

You must try to make all repayments of(This content has been withheld because of exemptions in the Freedom of Information Act 2000) or more using Bacs as it is the most secure, cheapest and quickest way to make a repayment.

To make a repayment by Bacs, the latest bank details should always be used. Where bank details have been provided, these are stored in COTAX and you can view them in function VTPR (View Taxpayer Record) on the Bank and/or Nominee Details page. Bank and/or nominee details are updated automatically from the last original return to have been received, an amended return where the amendment has been automatically processed by COTAX, or clerically using function BOND (Bank and / or Nominee Details) from one of the following:
- a signed letter from the company or its authorised agent on headed notepaper
- an email from the overpaid company or its authorised agent from a known and trusted email address
- a telephone call where the details provided are for either the company's or its authorised agent’s account and have been successfully verified using BARS
Where the bank account details are not held, you should contact the company and ask them to provide bank account details in a letter, email or by telephone. You should only make the repayment by payable order in exceptional circumstances where you have been unable to obtain bank account details.

Unless bank details are received on an online CT600 and automatically captured, you must use function BOND (Bank and/or Nominee Details) to record the account details on the COTAX record as soon as they are received.

Where you have not used the correct bank account details, the RSA needs to cancel the repayment so the correct details can be used.

If you need access to the BARS system, ask your manager to assign the “BARS Front End Tool User” role to you in the HMRC AppStore.

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Repayment by payable order

You should, wherever possible, use Bacs as the preferred method of repayment, especially for repayments of (This content has been withheld because of exemptions in the Freedom of Information Act 2000) or more. However, if the customer insists on repayment of (This content has been withheld because of exemptions in the Freedom of Information Act 2000) or more by payable order you can issue that using the COTAX system as long as the company (or their authorised agent) confirms in writing, on company (or agent) headed paper, the following:
- they are declining to provide Bacs (or CHAPS) details and that a payable order is the only viable option
- they understand the increased risk of receiving a refund via payable order
- their bank account (or other) will accept a payable order for the value in £ sterling
- the name and address to which the payable order should be sent (this should be the registered office address)
Once you have the confirmation, you should email CT Process Team, Mailbox (OE) with a PDF copy, requesting authority to issue the payable order. You should use function NOTE (Case Notes) to record your request.

Once you have received authority, you should use function DIRR (Direct Repayment) and create the repayment in the normal way.

Please note that, if the total amount being repaid by payable order (PO) is (This content has been withheld because of exemptions in the Freedom of Information Act 2000) or more the fact the repayment may be made up of two or more payable orders does not remove the requirement to follow the R49 process.

Where the correct process has not been followed, the RSA will refer the case back to you or consider cancelling the repayment so the correct method of repayment can be used.

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Repayment to be made by using Overpayment Accounting System (OAS)

Where you cannot make the repayment using the COTAX system, you need to use function REOD (Direct Reallocation Out of COTAX) to move the money into OAS so the repayment can be made by HMRC Payments.

Local Compliance Office

Where the reallocation is made from a Local Compliance office, regardless of the amount involved, the caseworker is responsible for:
- moving the money into OAS
- completing form Intelligent Payment Processing (IPP) Form
Where the amount to be repaid is:
- less than (This content has been withheld because of exemptions in the Freedom of Information Act 2000)(This content has been withheld because of exemptions in the Freedom of Information Act 2000), they should send the authorisation code to the RSA to carry out the R400 security checks
- (This content has been withheld because of exemptions in the Freedom of Information Act 2000) or more, the caseworker must complete page 1 of the R49 and pass the IPP form authorisation code and R49 (pages 1 and 2) to the R49 checker
Once the R49 checker has completed the R49 checks, they should complete page 2 and send the authorisation code to the RSA along with the R49 (pages 1 and 2) to carry out the R400 security checks.

Once the RSA has completed the security checks and has authorised the repayment they must authorise the IPP form.

If the R49 checker rejects the repayment, the reallocation must be reversed within 24 hours of this decision being made.

COM120100 (https://www.gov.uk/hmrc-internal-manuals/cotax-manual/com120100) has guidance on completing the IPP Form.

Please note that:
- Where the R49 checks are not carried out on site, you must find an available R49 checker before making the reallocation
- The reallocation must be done on the same day the papers are passed to the R49 checker
- The R49 checker must carry out their checks as soon as possible and once satisfied that the repayment can be made, immediately authorise the IPP form.
- If the R49 checker rejects the repayment, the reallocation must be reversed within 24 hours of this decision being made
Large Business (LB) office

Where the reallocation is made from an LB office, regardless of the amount involved, the case worker is responsible for:
- moving the money into OAS
- completing IPP form
Where the amount to be repaid is:
- less than (This content has been withheld because of exemptions in the Freedom of Information Act 2000)(This content has been withheld because of exemptions in the Freedom of Information Act 2000) they should send the authorisation code to the RSA to carry out the R400 security checks
- (This content has been withheld because of exemptions in the Freedom of Information Act 2000) or more, the caseworker must complete page 1 of the R49 and pass the IPP form authorisation code and R49 (pages 1 and 2) to the R49 checker
Once the R49 checker has completed the R49 checks, they should complete page 2 and send the authorisation code to the RSA along with the R49 (pages 1 and 2) to carry out the R400 security checks.

Once the RSA has completed the security checks and has authorised the repayment they must authorise the IPP form.

If the R49 checker rejects the repayment, the reallocation must be reversed within 24 hours of this decision being made.

COM120100 (https://www.gov.uk/hmrc-internal-manuals/cotax-manual/com120100) has guidance on how to complete the IPP.

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Repayment from the SAFE system or CTA archive

Where a charge is held on the SAFE system or as an archived CTA charge, a repayment may arise following an amendment to the charge. COM23130 (https://www.gov.uk/hmrc-internal-manuals/cotax-manual/com23130) provides guidance on how to amend these types of charges.

Local Compliance record

Where the repayment is for a Local Compliance record:
- the caseworker must complete the relevant SAFE 1 (NEW) or SAFE (2) stencil and pass it to their SAFE user to make the amendment on SAFE and
- where the amount to be repaid is less than (This content has been withheld because of exemptions in the Freedom of Information Act 2000), they should send the stencil to the Miscellaneous Charges Unit to carry out the security checks and make the repayment or
- complete page 1 of the R49
- pass the repayment papers along with the SAFE stencil and R49 (pages 1 and 2) to the R49 checker, who is responsible for completing the R49 checks
- once the R49 checker is satisfied that the repayment can be made they will send the SAFE stencil to the Miscellaneous Charges Unit to carry out the security checks and make the repayment
Large Business (LB) record

Where the repayment is for an LB record:
- the caseworker must complete the relevant SAFE 1 (NEW) or SAFE (2) stencil and pass it to their SAFE user to make the necessary amendment on SAFE and
- where the amount to be repaid is less than (This content has been withheld because of exemptions in the Freedom of Information Act 2000), they should send the stencil to the Miscellaneous Charges Unit to carry out the security checks and make the repayment
- complete page 1 of the R49
- pass the repayment papers along with the SAFE stencil and R49 (pages 1 and 2) to the R49 checker, who is responsible for completing the R49 checks
- once the R49 checker is satisfied that the repayment can be made they should pass the repayment papers to the RSA to carry out the R400 security check
- on completion of these checks the RSA sends the R49 to the Miscellaneous Charges Unit
Noting COTAX

In all cases, when the R49 is received and accepted by the RSA, they should use COTAX function NOTE to show 'R49 authorised and filed at (appropriate location)'.

See:
- COM126000 (https://www.gov.uk/hmrc-internal-manuals/cotax-manual/com126000) for more information about these cases
- COM124041 (https://www.gov.uk/hmrc-internal-manuals/cotax-manual/com124041) for a list of forms relevant to this subject