Beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Debt Management and Banking Manual

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

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