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HMRC internal manual

Debt Management and Banking Manual

Debt and return pursuit: tax credits: interest: action by SAFE Team - calculating and raising the charge

Calculating the interest due for CYR overpayments

You are responsible for calculating and raising interest charges

  • for all cross year recoveries
  • for WTC and CTC separately.

Interest should be calculated using IRIS Function SAIN01.

Raising the interest charge

After you have calculated the interest due (as above)

  • create an interest charge on SAFE (if appropriate create separate elements for WTC and CTC).

Note: In joint household cases you should create a SAFE Customer Account Record (CAR) (see DMBM101010) for the second applicant before creating the interest charge. The two CARS are then linked as part of the raise charge process.

Further action

When the interest charge has been raised SAFE will issue the required payment reminders. If the interest charge is not paid SAFE will pass the item to the DTO for recovery action and the debt will appear on the SAFE Local Action worklist.