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HMRC internal manual

COTAX Manual

From
HM Revenue & Customs
Updated
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Interest: interest objections and amendments: receipt of an interest objection (Action Guide)

When you receive an interest objection, consider steps 1 - 24 below. The guide is presented as follows

Interest objection received by Banking Operations Steps 1 - 4
   
Interest objection received by the Debt Management Office Steps 5 - 9
Sending an objection from the Debt Management Office to Banking Operations Step 10
Interest objection received by the responsible office Step 11
Considering sending an interest objection to the Interest Review Unit Step 12
Sending an objection from Banking Operations to the Interest Review Unit Steps 13 - 15
Sending an objection from the Debt Management Office to the Interest Review Unit Steps 16 - 21
Objection received against Interest Review Unit’s decision Steps 22 - 24

Interest objection received by Banking Operations

1. Use function RAPP (Revise AP Pursuit) to make the AP RFI.
   
2. Issue an acknowledgement letter if there will be a delay of over one week in dealing with the case.
3. Decide if you or the Interest Review Unit are to deal with the objection.
4. Consider the interest objection, if appropriate.

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Interest objection received by the Debt Management Office

5. Use function RSUS (Record / Amend Suspension) to suspend collection:
   
  * record the suspension ‘Type’ code as ‘7’
  * suspend the total amount of the interest charge.
6. Issue an acknowledgement letter if there will be a delay of over one week in dealing with the case.
  You can see full details of the suspension on Function DSUS (Display Suspension History) on screen COT223C under ‘Description’ as ‘Int Objection’.
7. Use Function VPPD (View Payment and Posting Details) to check the Pursuit Status of the AP.
8. If the Pursuit Status shows ‘CLEARED’:
  * use Function DPUR (Display Pursuit Action) to check if the pursuit status was previously LA, LA-ENF or PLA
  * use this information to decide which office is to deal with the objection.
9. Consider the interest objection if appropriate.

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Sending an objection from the Debt Management Office to Banking Operations

10. If Banking Operations needs to consider the objection, send the objection and any relevant papers to Banking Operations for attention.
   

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Interest objection received by the responsible office

11. Send any objection you receive to the Banking Operations office which deals with the company.
   

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Considering sending an interest objection to the Interest Review Unit

12. When considering submitting a case to the Interest Review Unit:
   
  * you should not agree to remit an interest charge and under no circumstances comment on the possible outcome of the objection
  * you should not reallocate payments to resolve an interest objection unless appropriate and in line with instructions
  * normally the tax liability must be paid and the final interest known before the Interest Review Unit can consider a case. Only in exceptional circumstances will a case be taken on at an earlier stage for example where a complaint has been made.
  The Interest Review Unit Intranet pages can be found by selecting ‘I’ from the ‘A-Z Index’ on the HM Revenue & Customs or the Debt Management & Banking intranet home pages. Those contain:
  * additional guidance material
  * help cards
  * the blank Interest Review Unit submission form.

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Sending an objection from Banking Operations to the Interest Review Unit

  (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
   
13. Where you identify a case appropriate for submission to the Interest Review Unit (IRU):
  * stop recovery action on the interest charge or charges, if not already done
  * prepare an Interest Review Unit interest submission. You can find a blank submission form on the Interest Review Unit intranet pages by selecting ‘I’ from the ‘A-Z Index’ on the HM Revenue & Customs or the Debt Management & Banking Intranet Home Pages.
14. Pass the papers to your supervisor to check the case and, if appropriate, forward the submission with the original papers to the IRU at Cumbernauld.
  The IRU:
  * vets the case for suitability
  * registers accepted cases, tells you the reference and when to expect a reply
  * asks you to tell the objector that the case has been passed to the IRU
  * asks you for additional information or papers where necessary.
15. When you receive the case back from the Interest Review Unit, the IRU:
  * has normally told the objector their decision
  * returns your papers under a cover note with a copy of their decision
  * updates the record to show any remission due.
  Where any interest remains collectible take the following actions.
  * Use function RSUS (Record / Amend Suspension) to cancel the suspension.
  * Use function RAPP (Revise AP Pursuit) to check the next automatic action, if necessary.
  * Continue collection action for the remaining liability.

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Sending an objection from the Debt Management Office to the Interest Review Unit

  (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
   
16. If the Interest Review Unit (IRU) needs to consider the interest objection:
  * stop recovery of the interest charge or charges
  * prepare an Interest Review Unit interest submission form. You can find a blank submission form on the Interest Review Unit intranet pages by selecting ‘I’ from the ‘A-Z Index’ on the HM Revenue & Customs or the Debt Management & Banking Intranet Home Pages.
17. Pass the papers to your supervisor to check the case and if appropriate, forward the submission and the original papers to the IRU at Cumbernauld.
  The IRU:
  * vets the case for suitability
  * registers accepted cases, tells you the IRU reference and when to expect a reply
  * asks you to tell the objector that the case has been passed to the IRU
  * asks you for additional information or papers where necessary.
18. For a case working locally, B/F appropriately on IDMS.
19. At the end of the B/F period, if you have not received a reply from IRU:
  * use function RSUS (Record / Amend Suspension) to suspend collection for a further period
  * send a memo to the IRU asking when the objection will be considered
  * B/F again on IDMS.
20. When you receive the case back from the Interest Review Unit, the IRU:
  * has normally told the objector their decision
  * returns your papers under a cover note with a copy of their decision
  * updates the record to show any remission due.
21. When you receive the case back from the Interest Review Unit, take appropriate pursuit action for any balance remaining collectible.

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Objection received against Interest Review Unit’s decision

22. If the objector contacts you, stop recovery action on the interest charge or charges and pass the case back to the Interest Review Unit using the Interest Review Unit submission form.
   
23. If the objector contacts the IRU, you may be asked to stop recovery action on the interest charge or charges and may be asked to send your papers to the IRU again.
24. In both circumstances the IRU will let you know their decision and send you a copy of their response if appropriate.