COM80037 - Interest: how interest is calculated: interest on carry-back / S419(4) ICTA 1988 relief (Action Guide)

Banking Operations Office action on receipt of form CT250(P)

Steps 1 - 3

Where the AP is subject to Clerical Pursuit at the Debt Management Office

Steps 4 - 5

Where the AP is subject to Clerical Pursuit at the Banking Operations Office

Steps 6 - 8

1.

Use the information provided on form CT250(P) to determine the effect of the carry-back or Section 419(4) ICTA 1988 relief on interest. To do this you may need to use

• Function VPPD (View Payment and Posting Details)

And

• Function DASS (Display Assessment Details)

2.

Use Function RMIC (Raise Manual Interest Charge) to charge the correct amount of interest. For more information see the Action Guides ‘Late payment Interest: Clerical Charge (Banking Operations)’ (COM80034) and ‘Credit / Debit Interest: Clerical Charge (Banking Operations)’ (COM80085)

Note: You must not amend the interest charge for carry-backs or Section 419(4) ICTA 1988 relief unless you hold form CT250(P) and have obtained authority on form AZ44

3.

Use Function IINT (Issue Interest Computation) to issue an interest computation to the company and / or the agent

4.

Where the Pursuit Status is either LA(Word 28KB) or LA-ENF (Word 27KB) or PLA (Word 28KB), the Banking Operations Office must

• Telephone the Debt Management Office immediately the interest position is correct

5.

When the Debt Management Office receives that information, they must resume normal collection action for the outstanding liability

Note: Where no interest charge is appropriate delete the case from the CIIW (Clerical Interest Indicator Work List’ or the CDIW (Credit Interest Indicator Work List)

6.

Where the Pursuit Status is either RFI (Word 31KB) or PRFI (Word 28KB) Banking Operations must

• Issue clerical payment applications up to and including the DN2, for the tax, penalty and interest that Function VPPD (View Payment and Posting Details) shows as collectible on the View AP Summary screen

7.

Where the liability remains unpaid after issuing the clerical DN2

• Use Function RAPP (Revise AP Pursuit) to amend the Pursuit Status to LA

• Use Function NOTE (Case Notes) to note payment applications issued and reason why case being made local action

8.

Where the AP remains overpaid Banking Operations must

• Telephone the CT Processing Office and ask them to deal with the overpayment

• B/F the entry on the LOPU (Overpayment Review List) Work List to ensure the overpayment is cleared