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HMRC internal manual

Debt Management and Banking Manual

HM Revenue & Customs
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Debt and return pursuit: tax credits: interest: action by Credit Compliance Office (CCO)

The Interest Stencil

As there is no NTC interest indicator or signal on either the NTC system or IDMS, interest cannot be calculated automatically.

Where an overpayment of tax credit attracts interest and the overpayment is to be recovered either direct from the claimant (except by contract settlement or by TC33 (NTC) charges) or from an on-going award, the CCO will complete an interest stencil and send it to the SAFE Team providing the details required to enable the necessary interest charge to be raised. The stencil will not be completed where the overpayment is being recovered by contract settlement as the interest will be included in the settlement and in TC33 (NTC) cases as the interest information is included on the TC33 (NTC).

The stencil provides all the necessary information, including

  • the award period in which the overpayment arose
  • the amount attracting interest
  • the date from which interest is chargeable
  • whether there is a continuing award or not

Note: The overpayment on the interest stencil may not agree with the total amount shown as overpaid on the NTC system because only the interest bearing amount is shown on the stencil.