CTM92710 - CTSA: quarterly instalments: calculating debit and credit interest

Credit and debit interest will be calculated by COTAX when:

• the company’s SA is recorded (or, exceptionally, you make a Revenue determination under FA98/SCH18/PARA36 or 37 in the absence of a return),and
• the normal due date for the accounting period has passed.

Debit and credit interest posting appear in COTAX. However, they are not separately identified in payment applications and reconciliation statements. Credit interest is shown as part (or all) of interest payable to the taxpayer and debit interest is aggregated with late payment interest.

Credit and debit interest can be calculated using function CINT and viewed using function DINT.

Credit interest allocated to a company can be seen in function VPPD with the posting type ICR.

Debit interest allocated to a company can be seen in function VPPD with the posting type IDB.

For detailed information about the functionality see the COTAX Manual (COM) in the ‘Pursuit’ business area.

Examples showing how to calculate debit and credit interest are at CTM92730.