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HMRC internal manual

Self Assessment Manual

From
HM Revenue & Customs
Updated
, see all updates

Interest, penalties and surcharge: interest: amending the effective date of payment (EDP) (Action Guide)

If you receive an objection to interest (or you otherwise learn that the effective date of payment (EDP) is wrong), follow steps 1 - 4 below

1. A Review Interest Officer (RIO) should examine the facts and if the taxpayer appears to be right
   
  -          Prepare form AZ63(SA) in duplicate as follows
  ·           Complete Section A
·           Complete Section B1  
·           Stamp the form  
  -          Pass the form to an Interest Supervisor (Grade HO or above) to sign
2. The Interest Supervisor should
  -          Examine the case papers
-          Complete and sign Section C  
-          Return the papers with one copy of the form AZ63(SA) to the RIO to effect the amendment  
-          Retain the other copy of the form AZ63(SA) centrally for use in future quality reviews  
3. On receipt of the signed form AZ63(SA) the RIO should where the payment is less than 12 months old
  -          If amendment is agreed use function AMEND EFFECTIVE DATE OF PAYMENT to amend the date on the SA record. Interest will be recalculated automatically. In the event of disagreement the Interest Supervisor will give advice
-          In all cases, write to the taxpayer to advise the outcome  
-          Use function MAINTAIN SA NOTES to record the action taken  
-          Retain the papers where you change the EDP, until any quality review has been completed  
4. On receipt of the signed form AZ63(SA) the RIO should where the payment is more than 12 months old
  -          If amendment is agreed arrange for the appropriate payment(s) to be transferred to and from the OAS system in the relevant Banking Operations office. See the Debt management & Banking Manual for more information
-          Interest will be recalculated automatically. In the event of disagreement the Interest Supervisor will give advice  
-          In all cases, write to the taxpayer to advise the outcome  
-          Use function MAINTAIN SA NOTES to record the action taken  
-          Retain the papers where you change the EDP, until any quality review has been completed  

Notes: 

1. Where the posting is part of a multiple payment all other postings are amended and the interest and surcharge position automatically reviewed.
   
2. Function AMEND EFFECTIVE DATE OF PAYMENT will not automatically reallocate payments.
3. Although you can use an online function to transfer money to OAS we recommend that you use it with discretion where an EDP is being amended.
  Instead you may wish to
  * Present the facts to the office responsible for accounting in written form and ask that the transfers to and from OAS be dealt with as quickly as possible
  In this way you minimise the risk of a taxpayer statement being issued showing unpaid liability and increased interest (because the payment has been removed temporarily from the record).