COM80220 | Interest: how interest is calculated: common period rules - reallocating from tax to tax QIP AP (Action Guide)

From HM Revenue & Customs · COTAX Manual

To understand the common period rules when reallocating from tax to tax when the receiving Accounting Period (AP) is a Quarterly Instalment payment (QIP) case, follow steps 1 to 16.

Table shown as recovered text

1. Is the first instalment date for the receiving AP to which you are reallocating to, is later than the Effective Date of Payment (EDP) of the payment? If yes, go to step 2 If no, go to step 7 2. Is today’s date earlier than the first instalment date for the receiving AP to which you are reallocating to? If yes, go to step 3 If no, go to step 10 3. Is the EDP of the payment earlier than today’s date? If yes, go to step 4 If no, go to step 16 4. The EDP of the RTO posting is set to today’s date. Is the normal due date of the donating AP from which you are reallocating from later than the EDP of the payment? If yes, go to step 5 If no, go to step 6 5. Repayment interest is due on the donating AP which you are reallocating from for the period from the normal due date +1 to today’s date. 6. Repayment interest is due on the donating AP which you are reallocating from for the period from the payment’s EDP +1 to the first instalment date on the AP to which you are reallocating to. 7. The EDP of the RTO posting is set to the EDP of the payment reallocated. Is the EDP of the payment earlier than the normal due date for the donating AP which you are reallocating from? If yes, go to step 8 If no, go to step 9 8. Credit interest is restricted on the donating AP from which you are reallocating. 9. The payment reallocated was not interest bearing. 10. The EDP of the RTO posting is set to the first instalment date for the receiving AP to which you are reallocating. Is the first instalment date on the receiving AP to which you are reallocating earlier than the normal due date for the donating AP from which you are reallocating from? If yes, go to step 11 If no, go to step 12 11. Credit interest is restricted on the donating AP which you are reallocating from. Go to step 13 12. No credit interest restriction is applied to the donating AP which you are reallocating from. Go to step 13 13. Is the normal due date of the donating AP which you are reallocating from later than the EDP of the payment? If yes, go to step 14 If no, go to step 15 14. Repayment interest is due on the donating AP which you are reallocating from for the period from the normal due date +1 to the first instalment date for the receiving AP to which you are reallocating to. 15. Repayment interest is due on the donating AP which you are reallocating from for the period from the payment’s EDP +1 to the first instalment date of the receiving AP to which you are reallocating to. 16. The EDP of the RTO posting is set to the EDP of the payment reallocated.