COM82033 - Interest: interest objections and amendments: considering a late payment interest objection (Action Guide)

To deal with a late payment interest objection in a Debt Management Office or in Banking Operations, follow steps 1 - 22 below

Note: You must maintain correctly charged late payment interest even for a difficult case

The guide is presented as follows

Notice to deliver not received / received late Step 1
Return still outstanding Step 2
ACT, DTR or Loss Carry Back Steps 3 - 4
Claim for an earlier EDP Steps 5 - 10
Payment incorrectly allocated Steps 11 - 12
Tax charge decreased Steps 13 - 15
Section 458 (formerly 419) relief Steps 16 - 18
(This text has been withheld because of exemptions in the Freedom of Information Act 2000)
Interest charge correct Step 21
Interest charge incorrect Step 22

Notice to deliver not received / received late

1. If a company objects on the grounds that the notice to deliver (Word 29KB) was received late or not received at all
 
  • Advise the company that this does not constitute a valid objection. The late payment interest (Word 27KB) is correctly due and payable. The legal requirement of a notice to deliver is that the company deliver a return. Payment should therefore always be made by the due date (Word 49KB) 

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Return still outstanding

2. If the company states that the return is still outstanding
 
  • Advise the company that the late payment interest charge is correctly due and payable and remind it of the penalties that will be charged if it fails to deliver the return(s) by the filing date (Word 42KB) 

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ACT, DTR or Loss Carry Back

3. If late payment interest has been calculated to a future date on an ACT, DTR (Double Taxation Relief) or loss carry-back
 
  • Check that the interest has been correctly calculated
 
4. If the company continue to press the objection telephone the COTAX Business Helpdesk (This text has been withheld because of exemptions in the Freedom of Information Act 2000) 

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Claim for an earlier EDP

5. If the company states that a payment (Word26KB) was made earlier than the date recorded on the AP check the posting type (Word 73KB) on the postings screen on Function VPPD (View Payments and Postings Details) by selecting the posting and clicking on the [OK] button
6. Where the posting type is BLP (payment made by cheque) then advise the company that the payment was not received until the date posted on the record and that the late payment interest charge is correctly due and payable. See step 18 for the actions you need to take
7. Where the posting type is
 
  • BGP (Bank Giro)
 
  • BAC (Bankers Automatic Clearing Service)
 
  • NGP (National Giro)
 
  • BGT (Bank Giro or Chaps)
  Check with Banking Operations Shipley for any delays in payments being processed and posted to the AP. If there have been any delays use function AEDP (Amend Effective Date of Payment) to amend the EDP (Word 41KB) to the correct date. See step 19 on how to amend the late payment interest charge
8. Where the posting type is
 
  • IRP (Inland Revenue Payable Order)
 
  • DSO (District Set-Off)
 
  • LOP (Local Office Payment)
  Check with Shipley that the correct EDP has been given. If an incorrect EDP has been posted then use Function AEDP (Amend Effective Date of Payment) to amend the EDP. See step 19 on how to amend the late payment interest charge
9. Where the posting type is RFR (Reallocate from) check that the correct EDP has been given to the reallocation. If an incorrect EDP has been posted then use Function AEDP (Amend Effective Date of Payment) to amend the EDP. See step 19 on how to amend the late payment interest charge
10. Where the correct EDP has been given to the payment then advise the company that the late payment interest charge is correctly due and payable. See step 18 for the actions you need to take

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Payment incorrectly allocated

11. Use Function VPPD (View Payment and Postings Details) postings screen to check that payments have been correctly allocated to the company’s record. Where payments have been misallocated correct the record and see step 19 on how to amend the late payment interest charge
12. If the company’s record is correct then explain that the payment allocation is correct and that the late payment interest charge is correctly due and payable. See step 18 for the actions you need to take

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Tax charge decreased

13. Use Function VPPD (View Payments and Postings Details) to find out what the revised tax charge (Word 28KB) is
14. Use Function DINT (Display Interest Computation) to see if late payment interest has been correctly calculated on the correct tax charge
15. If the late payment interest has not been calculated on the revised tax charge see step 19 on how to amend the late payment interest charge

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Section 458 (formerly 419) relief

16. Confirm with the owning office that the correct date for S458 CTA 2010 (Word 29KB) (formerly S419(4) ICTA 1988) relief has been given on CT250(P)
17. If the incorrect date was supplied see step 19 on how to amend late payment interest
18. If the correct date has been given then explain to the company how the EDP for S458 CTA 2010 (formerly S419(4) ICTA 1988) is calculated and advise that the late payment interest is correctly due and payable. See step 18 for the actions you need to take
(This text has been withheld because of exemptions in the Freedom of Information Act 2000)

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Interest charge correct

21. If the interest is correct
 
  • Send a letter of explanation to the company
 
  • Use Function RAPP (Revise AP Pursuit) to cancel RFI
 
  • Continue with collection
(This text has been withheld because of exemptions in the Freedom of Information Act 2000)

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Interest charge incorrect

22. If the late payment interest is incorrect, you will need to amend it. For more information on how to do this see Action Guides ‘Clerical Calculation Of Late Payment Interest’ (COM80034) in section ‘How Interest is Calculated’ of this business area

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