COM82040 - Interest: interest objections and amendments: amending an interest charge

Following a review of an interest objection you may find that interest has been under or overcharged.

Where interest has been undercharged, the interest will need to be increased and collection of the resulting liability pursued.

Where interest has been overcharged, the interest will need to be decreased by discharging some or all of the original interest charge.

Note: Where the owning office makes an informal discharge in an investigation case using Function RINF (Record Informal Discharge), the system automatically

• Ignores any interest accrued but not yet charged

And

• Discharges tax and any associated interest charged

The clerical decrease of an interest charge requires authorisation.

In Banking Operations, authority to amend interest rests with a Senior Officer, a Higher Officer or an Officer.

In the Debt Management Office, the action to be taken when discharge of interest has been authorised by the Manager will depend on

• The underlying reason for the interest being incorrect

And

• The state of the record at the time when the interest is corrected

The factors affecting the state of the record which need to be considered are whether

• Interest or part of it, has been remitted
• The Clerical Interest Indicator (CII (Word 32KB)) is set to ‘Y’
• Inhibit Reallocations and Repayments signals are set

For a list of forms relevant to this subject, see COM82021.

For a list of functions to use in particular situations, see COM82022.