COM81016 - Interest: interest work lists: clerical interest indicator work list (CIIW), debt management
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To deal with cases on the ‘Clerical Interest Indicator’ work list’ consider steps 1 - 27 below. The guide is presented as follows.
Step 1 Initial action
Steps 2 – 5 Establishing why the case is on the work list
Steps 6 – 9 CII Indicator set by an OU
Steps 10 – 11 CII Indicator set automatically
Steps 11 – 13 A carry-back has been given on the AP
Steps 14 -16 Too many interest accruals to display
Steps 17 – 20 Remission exists on AP
Steps 21 – 22 Calculating a manual late payment interest charge
Step 23 Raising a late payment interest charge
Steps 24 – 25 Increasing a late payment interest charge
Step 26 Reducing a late payment interest charge
Step 27 To delete a case from the CIIW work list
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
Establishing why the case is on the work list
2. Select the [View] button to see all the available details for the case including the reason for entry on to the list
Please note that 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 VPPD (View Payments and Postings Details) and check the outstanding balance of the tax
4. Where there is a collectible balance for the tax, delete the case from the work list. You should only raise late payment interest on the COTAX system when the tax has been paid in full
5. Where the tax has been paid in full go to step 6 where the CII (Clerical Interest Indicator) has been set clerically, or step 10 where it has been set automatically
CII Indicator set by an OU
6. 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
7. Where the CII Indicator has been set so that a remission could be actioned go to step 14
8. Where the CII Indicator has been set for any other reasons review the papers and decide whether late payment interest needs to be raised
9. Use function RMIC (Raise Manual Interest Charge) to charge the correct amount of late payment interest as per instructions received. For more information on late payment interest see subject ‘Late Payment Interest’ (COM80010) in section ‘How Interest is Calculated’
CII Indicator set automatically
10. 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 the following has happened:
- an Advanced Corporation Tax, Section 455 (formerly S419) relief, trade loss or non-trading deficit carry-back previously resulted in a repayment or reallocation and a further event is recorded on the record. Go to step 11
- there are too many interest accruals for COTAX to automatically calculate the late payment interest charge. Go to step 14
A carry-back has been given on the Accounting Period (AP)
11. Send a memo to HMRC Payments asking them to consider the Late Payment Interest position.
12. Enter a new B/F date against the case on the CIIW work list for a reply from HMRC Payments.
13. On receipt of confirmation in writing that HMRC Payments have considered the Late Payment Interest position (they will have either raised a manual Late Payment Interest charge or amended an existing charge) delete the work item.
Too many interest accruals to display
14. 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
15. You should use function CINT (Compute Interest) to calculate the correct interest charge
16. Send and eForm to ‘Banking Corporation Tax Unit’ and mark the referral as ‘Interest Calculation’ providing details of the interest due and asking for the charge to be raise on the SAFE system
Remission exists on Accounting Period (AP)
17. 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.
18. 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.
19. Where interest is not appropriate delete the case from the work list.
20. Where late payment interest is appropriate use function RMIC (Raise Manual Interest Charge) to calculate and raise the charge.
Calculating a manual late payment interest charge
21. Use function VPPD (View Payment and Postings Details) to check whether a late payment interest charge is appropriate.
22. Use either:
- function CINT - Compute Interest
- function DINT - Display Interest Computation
- funtion RMIC - Raise Manual Interest Charge
To calculate the correct late payment interest charge. For more information on how to calculate late payment interest see subject ‘Late Payment Interest’ (COM80010) in section ‘How Interest is Calculated’
Raising a late payment interest charge
23. Use function RMIC (Raise Manual Interest Charge) to raise the late payment interest charge. For more information see subject ‘Late Payment Interest’ (COM80010) in section ‘How Interest is Calculated’
Increasing a late payment interest charge
24. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
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25. Use function RMIC (Raise Manual Interest Charge) to increase the charge.
Reducing a late payment interest charge
26. If the charge is incorrect and needs to be reduced complete AZ63 for authorisation by an Officer or above. Use function RMIC (Raise Manual Interest Charge) to reduce the interest charge.
To delete a case from the CIIW work list
27. If a late payment interest charge is not appropriate delete the entry from the work list