COM81022 - Interest: interest work lists: credit interest work list (CDIW) - Banking Operations (Action Guide)

Initial action

Step 1

Establishing why the case is on the work list

Step 2

Calculating a manual interest charge for a non QIP case

Step 3

Calculating a manual interest charge for a non QP case

Steps 4 - 9

Calculating a manual interest charge for a QP case

Steps 10 - 13

Raising / Increasing a manual interest charge

Step 14

Reducing a manual interest charge

Steps 15 - 17

Pursuit action where amounts unpaid

Steps 18 -19

Dealing with an overpayment

Step 20

Straddling AP with S501A charge

Step 21

To delete a case from the CDIW work list

Step 22

Note: You cannot normally calculate Debit Interest (Word 31KB) or Credit Interest (Word 34KB) until after the normal due date (Word 49KB) for the AP. However, where the tax charge is nil, and all tax has been repaid then a credit interest charge can be raised before the due date.

1.

Use Function CDIW (Credit Interest work list) to display the work list, and select the entry that you want to work

2.

Select the [View] button to see all available details for the case including the reason for entry onto the list

Note: The reason shown will reflect why the case was originally put onto the list. It will only reflect any subsequent changes if the case has previously been deleted and the list has been re-populated with a new entry

3.

Use Function DAPD (Display AP Details) or Function RAPP (Revise AP Pursuit) to check and note the current Quarterly Instalment Payment (Word 42KB) (QP) signal for the AP. Where the QP signal is ‘N’ go to step 4. Where the QP signal is ‘Y’ go to step 10

4.

Use Function VPPD (View Payment and Postings Details) to check the payment and interest position on the AP record

5.

If payments received on or after the normal due date (Word 49KB), credit interest is not due. Delete the case from the work list

6.

If any payments received before the normal due date credit interest is due from the later of

• The EDP

Or

• The first instalment due date (Word 42KB) if the AP had been a QP case

to the normal due date

7.

To calculate the credit interest due you can use any of the following functions

• Function CINT - Compute Interest

Or

• Function DINT - Display Interest Computation

Or

• Function RMIC - Raise Manual Interest Charge

For further information on how to calculate and raise credit interest see the Action Guides ‘Clerical Calculation of Credit / Debit Interest’ (COM80084) in section ‘How Interest is Calculated’

8.

If you need to raise a manual credit / debit interest charge go to step 12

9.

If a manual credit / debit interest charge is not appropriate go to step 20

10.

Use Function VPPD (View Payment and Postings Details) to check the payment and interest position on the AP record

11.

To calculate the credit interest due you can use any of the following functions

• Function CINT - Compute Interest

Or

• Function DINT - Display Interest Computation

Or

• Function RMIC - Raise Manual Interest Charge

For further information on how to calculate and raise credit interest see the Action Guides ‘Clerical Calculation of Credit / Debit Interest’ (COM80084) in section ‘How Interest is Calculated’

12.

If you need to raise a manual credit / debit interest charge go to step 14

13.

If a manual credit / debit interest charge is not appropriate go to step 22

14.

Use Function RMIC (Raise Manual Interest Charge) to

• Calculate and post Credit and / or Debit Interest. For more information see the Action Guides ‘Clerical Calculation of Credit / Debit Interest’ (COM80084) in section ‘How Interest Is Calculated’

15.

Use Function RMIC (Raise Manual Interest Charge) to calculate and post credit and / or debit interest. For more information see the Action Guides ‘Clerical Calculation of Credit / Debit Interest’ (COM80084) in section ‘How Interest is Calculated’

16.

If the original charge is incorrect and needs to be reduced complete AZ44 for authorisation to decrease the interest charge

17.

Once the AZ44 has been authorised by an Officer or above use Function RMIC (Raise Manual Interest Charge) to amend the interest charge

18.

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

• 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 View AP Summary

19.

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 to record the clerical payment applications issued

20.

Where the AP remains overpaid

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

• Use Function LOPU (Overpayments Review List) to display the work list and B/F the entry to ensure the overpayment is cleared

And, in Banking Operations Cumbernauld

• Issue a completed form AOC714 to the CT Processing Office

21.

Where the Reason for Listing field shows ‘Straddling AP with SS501A Charge’, the AP contains a supplementary charge on a ring fence trade.

• You need to calculate the credit / debit interest manually

See subject ‘Clerical calculation of credit / debit interest’ (COM80080) in section ‘How Interest Is Calculated'. Choose the appropriate Banking Operations or Debt Management Action Guide (COM80084).

See also subject ‘Supplementary tax on North sea oil companies’ (COM80100) in the same business area for further information on S501A and ring fence trades

22.

Select the [Delete] button. The case will be deleted