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HMRC internal manual

COTAX Manual

From
HM Revenue & Customs
Updated
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Interest: interest work lists: clerical interest indicator work list (CIIW) - debt management

To deal with cases on the ‘Clerical Interest Indicator’ work list’ consider steps 1 - 27 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 Steps 10 - 13
A carry-back has been given on the AP Steps 11 - 13
Too many interest accruals to display Steps 14 -16
Remission exists on AP Steps 17 - 20
Calculating a manual late payment interest charge Steps 21 - 22
Raising a late payment interest charge Step 23
Increasing a late payment interest charge Steps 24 - 25
Reducing a late payment interest charge Step 26
To delete a case from the CIIW work list Step 27

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

2. Select the [View] button to see all the available details for the case including the reason for entry on to 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 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 (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

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’

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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 were the following has happened
   
  * An ACT, S455 (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

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A carry-back has been given on the AP

11. Send a memo to Banking Operations 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 Banking Operations
13. On receipt of confirmation in writing that Banking Operations 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

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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 e form 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

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Remission exists on 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
2017. 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

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
  Or
  * Function DINT - Display Interest Computation
  Or
  * Function 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’

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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’
   

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Increasing a late payment interest charge

(This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
   
  * (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  * (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  * (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

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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