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HMRC internal manual

COTAX Manual

From
HM Revenue & Customs
Updated
, see all updates

Interest: interest objections and amendments: why an interest charge may be incorrect

A late payment interest charge may be incorrect for one or more of the following reasons.

Where the clerical interest indicator (CII) is set to ‘N’:

  • the EDP of one or more payment type credits is incorrect
  • a payment type posting has been incorrectly allocated.

Where the Clerical Interest Indicator is set to ‘Y’:

  • the EDP of one or more payment type credits is incorrect
  • a payment type posting has been incorrectly allocated
  • the underlying tax has been reduced
  • carry-back of DTR (double taxation relief) or losses is involved
  • relief has been granted under S458 CTA 2010.

A debit interest charge may be incorrect for one or more of the following reasons.

Where the credit / debit interest indicator (CDII) is set to ‘N’:

  • the EDP of one or more payment type credits is incorrect
  • a payment type posting has been incorrectly allocated
  • a payment type posting has been transferred to OAS
  • the quarterly instalment payment (QIP) signal has incorrectly been set to ‘Y’.

Where the credit / debit interest indicator (CDII) is set to ‘Y’:

  • the EDP of one or more payment type credits is incorrect
  • a payment type posting has been incorrectly allocated
  • the underlying tax has been decreased
  • not all payments have been included in the calculation
  • the quarterly instalment payment (QIP) signal has incorrectly been set to ‘Y’.