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HMRC internal manual

COTAX Manual

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HM Revenue & Customs
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Interest: interest work lists: clerical interest indicator work list (CIIW) - banking operations

To deal with cases on the Clerical Interest Indicator work list consider steps 1 - 30 below. The guide is presented as follows.

Initial action Step 1
   
Establishing why the case is on the work list Steps 2 - 5
CII Indicator set by an OU Steps 6 - 9
CII Indicator set automatically Step 10
Carry-back of S458 relief has been given Steps 11 - 13
Too many interest accruals to display Steps 14
Remission exists on AP Steps 15 - 18
Calculating a manual late payment interest charge Steps 19 - 20
Raising a late payment interest charge Step 21
Increasing a late payment interest charge Steps 22 - 23
Reducing a late payment interest charge Steps 24 - 25
Where the AP is subject to clerical pursuit at the Debt Management Office Steps 26 - 27
Where the AP is subject to clerical pursuit at the Banking Operations Office Steps 28 - 29
To delete a case from the CIIW work list Step 30

Initial action

  1.  Use function CIIW (Clerical Interest Indicator work list) to display the work list, and select the entry that you want to work.

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Establishing why the case is on the work list

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

The reason for entry reflects 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.

  1.  Use function VPPD (View Payments and Postings Details) and check the outstanding balance of the tax.

  2.  Where there is a collectible balance for the tax, delete the case from the work list. You should only raise late payment interest on COTAX when the tax has been paid in full.

  3.  Where the tax has been paid in full go to step 6 where the CII (Word 32KB) (Clerical Interest Indicator) has been set clerically, or step 10 where it has been set automatically.

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CII Indicator set by an OU

  1.  Where the CII Indicator has been set by any other office but your own, check that instructions have been received as to why the signal has been set. Where instructions have not been received contact the office that set the signal for details of the case.

  2.  Where the CII indicator has been set so that a remission could be actioned go to step 14.

  3.  Where the CII indicator has been set for any other reason review the papers and decide whether late payment interest needs to be raised.

  4.  Use function RMIC (Raise Manual Interest Charge) to charge the correct amount of late payment interest as per instructions received. See COM80010 for more information on how to raise late payment interest.

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CII Indicator set automatically

  1.  Where the CII indicator has been set automatically, use function VPPD (View Payment and Postings Details) to identify why COTAX has set the signal. This will be where one of the following has happened.
  • An ACT, trade loss or non-trading deficit carry-back previously resulted in repayment or reallocation and a further event is recorded on the record. Go to step 11.
  • S458 CTA 2010 relief has been given. Go to step 11.
  • The number of interest accruals exceeds 200. Go to step 14.

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Carry-back of S458 relief has been given

  1.  Use the information provided on form CT250(P) received from the CT Processing Office to determine the effect of the relief displaced by carry-back or S458 CTA 2010 relief on interest. To do this you may need to use function VPPD (View Payment and Postings Details) and function DASS (Display Assessment Details).

  2.  Use RMIC (Raise Manual Interest Charge) to charge the correct amount of interest. See COM80034 for more information.

You must not amend the Late Payment Interest charge for carry-backs or S458 CTA 2010 Relief unless you hold form CT250(P) or have received details from the assessing office.

  1.  Use function IINT (Issue Interest Statement) to issue an interest statement to the company and / or agent.

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Too many interest accruals to display

  1.  Where you receive the error message in function RMIC ‘Too many interest accruals to display’ this means that COTAX cannot calculate or raise the interest charge either automatically or clerically.

Use Function CINT (Compute Interest) to calculate the correct interest charge and arrange for the charge to be raised on the SAFE system.

Remission exists on AP {#IDAIDGPG}

  1.  Where a remission has been posted to a penalty charge and / or the interest charge but not tax then unset the CII (Clerical Interest Indicator). The case will automatically be deleted from the work list.

  2.  Where a remission has been posted to the tax charge, review the case to establish if late payment interest should be raised. Do not unset the CII (Clerical Interest Indicator) as COTAX will incorrectly calculate late payment interest.

  3.  Where interest is not appropriate delete the case from the work list.

  4.  Where late payment interest is appropriate use function RMIC (Raise Manual Interest Charge) to calculate and raise the charge.

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Calculating a manual late payment interest charge {#IDAOFGPG}

  1.  Use function VPPD (View Payment and Postings Details) to check whether a late payment interest charge is appropriate.

  2.  To calculate the correct late payment interest charge use function CINT - Interest Calculator, function DINT - Display Interest Computation or function RMIC - Raise Manual Interest Charge.

See COM80010 for more information.

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Raising a late payment interest charge

  1.  Use function RMIC (Raise Manual Interest Charge) to raise the late payment interest charge. For more information on how to raise late payment interest see subject ‘Late Payment Interest’ (COM80010) in section ‘How Interest is Calculated’

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Increasing a late payment interest charge

  1.  If a late payment interest charge already exists on the record and needs to be increased then only increase it if one of the following apply.
  • The increase is above the de-minimis limit.
  • The increase is £1.00 or more but still below the de-minimis limit and an overpayment exists which will clear the charge.
  • The increase is below the de-minimis limit and the existing interest charge is still collectible.

Otherwise delete the entry from the work list without amending the interest charge.

  1.  Use function RMIC (Raise Manual Interest Charge) to increase the interest charge.

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Reducing a late payment interest charge {#IDADPGPG}

  1.  If the charge is incorrect and needs to be reduced, complete form AZ44 for authorisation to decrease the interest charge.

  2.  Once the AZ44 has been authorised by an Officer or above use function RMIC (Raise Manual Interest Charge) to reduce the interest charge.

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Where the AP is subject to clerical pursuit at the Debt Management Office

  1.  Where the pursuit status is either LA (Word 28KB) or LA-ENF (Word 27KB) or PLA (Word 28KB)  telephone the Debt Management Office immediately the interest position has been corrected.

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

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Where the AP is subject to clerical pursuit at the Banking Operations Office {#IDAUSGPG}

  1.  Where the liability remains unpaid 7 days after reducing the interest charge, use:
  • function RAPP (Revise AP Pursuit) to amend the Pursuit Status to LA
  • function NOTE to record the clerical payment applications issued.
  1.  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.

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To delete a case from the CIIW work list {#IDA5WGPG}

  1.  Select the [Delete] button to delete the case from the work list.