DMBM210270 | Payment Allocation, Repayments and Overpayments: IRIS: Automatic Reallocations on the D/E Masterfile

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Automatic Reallocation

Where an overpayment arises as a result of an amendment to a Schedule D tax and/or Class 4 NIC charge, the overpayment will normally be<ul><li class="filledcircle">automatically reallocated against any other tax or NIC outstanding in respect of the amended assessment (see DMBM210275). </li></ul>Where a balance of tax or NIC remains outstanding, we automatically<ul><li class="filledcircle">advise the taxpayer of the reallocation, where the amount being reallocated is more than £10 </li><li class="filledcircle">request payment of the outstanding amount using the normal Demand cycle. </li></ul><h2>Automatic Reallocation not appropriate</h2>The overpayment will not be automatically reallocated if the amendment is processed before 1 June following the end of the year of assessment and either<ul><li class="dash">an amount of £1,000 or more is to be reallocated to the second instalment </li></ul><blockquote class="noquotes"><p>or</p></blockquote><ul><li class="dash">the tax etc is not yet due and the taxpayer has asked that no reallocation should be made. </li></ul>DMB Banking will<ul><li class="filledcircle">be notified of the overpayment on the Daily OAS Statement, and </li><li class="filledcircle">deal with these cases clerically. </li></ul>Note: Automatic reallocation of an overpayment is not used for Schedule E charges. Where appropriate, DMB Banking will send a report to the Processing Office.