COM120020 - Repayments / reallocations: overpayments: general: overpayments that cannot be handled automatically
Source: gov.uk (2025-12-02)


COTAX handles most reallocations and repayments and calculates any repayment automatically. COTAX does not reallocate or repay an overpayment when:
- repayment /reallocation inhibit signals have been set on the overpaid Accounting Period AP or
- certain conditions exist on the potentially receiving AP
Some inhibitions are automatically set by COTAX but you can also prevent COTAX from making automatic repayments and reallocations by setting the appropriate signals. See COM120030 (https://www.gov.uk/hmrc-internal-manuals/cotax-manual/com120030) for more information.

Overpaid Accounting Period (AP (#IDA0BL4B))Other Accounting Periods (APs (#IDAKZK4B))Potentially receiving Accounting Period (AP (#IDA20K4B))

Overpaid Accounting Period (AP)

If any of these conditions apply to the overpaid AP, COTAX does not make automatic reallocation or repayment.
- no self assessment has been recorded
- the AP has been cleared NDR (No Determination Required)
- there is a revenue determination, discovery assessment or jeopardy amendment present
- the ‘QIP’ signal is ‘P’ or ‘Y’
- the ‘enquiry in progress’ signal is set to ‘Y’
- the CDII (credit/debit interest indicator) is set to ‘Y’
- participating AP is within a GPP (group payment period) with a status that is not ‘cleared’
- participating AP is not linked with a GPP
- tax or penalty is under appeal
- there is an informal standover of tax or penalty (posting ISO) present
- the insolvency signal is other than ‘S’
- the pursuit status is LA-ENF or RFI
- a cheque payment has been received that has made the AP overpaid. COTAX does not repay or reallocate any cheque payments until after 14 days of receipt to allow time for the cheque to clear
- S963 CTA 2010 (formerly S102) surrender claim and inhibit reallocations and repayments signal set automatically by COTAX
- the ‘clerical interest’ indicator is set to ‘Y’
- there is a potential penalty due because of a late return
- there is an informal discharge (posting IDI) present
- there is a class 10 remission
- the overpayment has arisen as a result of a payment allocated as specified by the company to make a duty type overpaid (14 days inhibit)
- the cancelled repayment inhibit signal is set
- a closure notice has been issued with a revenue amendment (14 days inhibit)
An automatic repayment is also not made where any of the following apply.
- a payable order would go to an address that is RLS
- ‘Repayments only’ have been inhibited by an operator
- the company have asked for small repayments to be inhibited
- the overpayment is for £20 or less, repayment to debit or credit card is not appropriate and bank details are not held on COTAX
Other Accounting Periods (APs)

If any of the following conditions apply to other APs for the company, COTAX does not make automatic reallocations or repayments.
- automatic reallocations and repayments have been inhibited by an operator for all APs
- the company have delivered more than one return at the same time (multiple return)
- the ‘enquiry in progress’ signal is set to ‘Y’
- the ‘QIP’ signal is set to ‘Y’ or ‘P’
- there is a revenue determination which has been automatically stood over because there is a logged return but no corresponding self assessment recorded for that AP
- the participator has an underpaid AP in a Group Payment Arrangement (GPA)
- there is a repayment claimed for an earlier year on a later years return
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Potentially receiving Accounting Period (AP)

If any of these conditions apply to the potentially receiving AP, COTAX does not make automatic reallocations.
- the AP is past its normal due date and has no tax charge present
- there is a suspension present
- the ‘clerical interest’ indicator is set to ‘Y’
- the pursuit status is LA-ENF or RFI
- there is an informal discharge (posting IDI) present
- there is a manual remission (posting RMM) present
- the reallocation will make a superseded AP overpaid
It also does not automatically reallocate where the due date is more than 60 days ahead unless the company have asked for small repayments to be inhibited or the overpayment is for £20 or less, repayment to debit or credit card is not appropriate and bank details are not held on COTAX.

In these cases it automatically reallocates to a future AP regardless of when it becomes due.

See:
- COM120011 (https://www.gov.uk/hmrc-internal-manuals/cotax-manual/com120011) for a list of functions to use in particular situations
- COM120012 (https://www.gov.uk/hmrc-internal-manuals/cotax-manual/com120012) for legislation applying to this subject