COM80060 - Interest: how interest is calculated: repayment interest

Repayment interest (Word 80KB) is automatically calculated when either a repayment or a reallocation is made and

• The due date (Word 49KB) has passed
• The repayment / reallocation is being made after that date

• A self assessment has been recorded

Repayment interest will not be calculated automatically where a repayable sum is reallocated to

• OAS (Word 28KB) 
• The due date has passed

• A self assessment has not been recorded

In these circumstances you should follow the instructions given in subject ‘Early Repayment CTSA APs - Owning Office’ (COM125060) in section ‘Non Automatic Repayments’, business area Repayments / Reallocations.

Repayment interest is calculated from the later of

• The day after the normal due date

• The date the payment was made

To the date the repayment or reallocation is being made. See CTSA Material dates (Word 108KB) for full details.

You can view repayment interest in Function VPPD (View Payments and Postings Details) in the postings screen. The posting type RIN identifies repayment interest. You can view how repayment interest has been calculated by selecting this posting

For a list of forms relevant to this subject, see COM80011.

For a list of functions to use in particular situations, see COM80012.

For legislation applying to this subject, see COM80013.