COM81022 - Interest: interest work lists: credit interest work list (CDIW) - Banking Operations (Action Guide)
To deal with cases on the ‘Credit Interest’ work list consider steps 1 - 21 below. The guide is presented as follows
Step 1 Initial action
Step 2 Establishing why the case is on the work list
Step 3 Calculating a manual interest charge for a non QIP case
Steps 4 - 9 Calculating a manual interest charge for a non QIP case
Steps 10 - 13 Calculating a manual interest charge for a QP case
Step 14 Raising / Increasing a manual interest charge
Steps 15 - 17 Reducing a manual interest charge
Step 18 Pursuit action where amounts unpaid
Step 19 Dealing with an overpayment
Step 20 Straddling AP with S501A charge
Step 21 To delete a case from the CDIW work list
Initial action
Note: You cannot normally calculate Debit Interest or Credit Interest until after the normal due date (Word 49KB) for the AP. However, where the tax charge is nil, and all tax has been repaid then a credit interest charge can be raised before the due date.
1. Use Function CDIW (Credit Interest 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 available details for the case including the reason for entry onto 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
Checking the Quarterly Instalment Payment (QP) signal
3. Use Function DAPD (Display AP Details) or Function RAPP (Revise AP Pursuit) to check and note the current Quarterly Instalment Payment (QP) signal for the AP. Where the QP signal is ‘N’ go to step 4. Where the QP signal is ‘Y’ go to step 10
Calculating a manual interest charge for a non QIP case
4. Use Function VPPD (View Payment and Postings Details) to check the payment and interest position on the AP record
5. If payments received on or after the normal due date (Word 49KB), credit interest is not due. Delete the case from the work list
6. If any payments received before the normal due date credit interest is due from the later of
- The EDP
Or
- The first instalment due date (Word 42KB) if the AP had been a QP case
to the normal due date
7. To calculate the credit interest due you can use any of the following functions
- Function CINT - Compute Interest
Or
- Function DINT - Display Interest Computation
Or
- Function RMIC - Raise Manual Interest Charge
For further information on how to calculate and raise credit interest see the Action Guides ‘Clerical Calculation of Credit / Debit Interest’ (COM80084) in section ‘How Interest is Calculated’
8. If you need to raise a manual credit / debit interest charge go to step 12
9. If a manual credit / debit interest charge is not appropriate go to step 20
Calculating a manual interest charge for a QP case
10. Use Function VPPD (View Payment and Postings Details) to check the payment and interest position on the AP record
11. To calculate the credit interest due you can use any of the following functions
- Function CINT - Compute Interest
Or
- Function DINT - Display Interest Computation
Or
- Function RMIC - Raise Manual Interest Charge
For further information on how to calculate and raise credit interest see the Action Guides ‘Clerical Calculation of Credit / Debit Interest’ (COM80084) in section ‘How Interest is Calculated’
12. If you need to raise a manual credit / debit interest charge go to step 14
13. If a manual credit / debit interest charge is not appropriate go to step 22
Raising / Increasing a manual interest charge
14. Use Function RMIC (Raise Manual Interest Charge) to Calculate and post Credit and / or Debit Interest. For more information see the Action Guides ‘Clerical Calculation of Credit / Debit Interest’ (COM80084) in section ‘How Interest Is Calculated’
Reducing a manual interest charge
15. Use Function RMIC (Raise Manual Interest Charge) to calculate and post credit and / or debit interest. For more information see the Action Guides ‘Clerical Calculation of Credit / Debit Interest’ (COM80084) in section ‘How Interest is Calculated’
16. If the original charge is incorrect and needs to be reduced complete AZ44 for authorisation to decrease the interest charge
17. Once the AZ44 has been authorised by an Officer or above use Function RMIC (Raise Manual Interest Charge) to amend the interest charge
Pursuit action where amounts unpaid
18. Where the liability remains unpaid 7 days after you have corrected the interest position
-
Use Function RAPP (Revise AP Pursuit) to amend the Pursuit Status to LA
-
Use Function NOTE to record the clerical payment applications issued
Dealing with an overpayment
19. 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
Straddling AP with S501A charge
20. Where the Reason for Listing field shows ‘Straddling AP with SS501A Charge’, the AP contains a supplementary charge on a ring fence trade
- · You need to calculate the credit / debit interest manually
See subject ‘Clerical calculation of credit / debit interest’ (COM80080) in section ‘How Interest Is Calculated’. Choose the appropriate Banking Operations or Debt Management Action Guide (COM80084)
See also subject ‘Supplementary tax on North sea oil companies’ (COM80100) in the same business area for further information on S501A and ring fence trades
To delete a case from the CDIW work list
21. Select the [Delete] button. The case will be deleted