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