DMBM555560 - Debt and return pursuit: tax credits: interest: action by DTO in direct recovery cases

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Action by DMCO/Debt Technical Offices (DTOs) in direct recovery cases

Where there is a note in ‘Notes/Assets’ on IDMS that an overpayment is interest bearing you are responsible for

• ensuring that letters issued to the claimant(s) warn of interest
• pursuing recovery of the overpayment in the usual way.

If an overpayment is paid for which you are responsible

• calculate interest using IRIS Function SAIN01 from information on IDMS ‘Notes /Assets’
• create an interest charge on SAFE and, depending on whether there are still outstanding overpayments, on IDMS.

Note: separate interest charges are required for WTC and CTC.

The interest bearing element of the overpayment is assumed to be paid before any non interest bearing element