SolvedTCM0230060 | Payment - overpayments (Q-Z): overpayments - remissions - make or cancel
From HM Revenue & Customs · Tax Credits Manual
Checklist
Before you follow this guidance make sure you
have the correct user roles to follow this guidance
have access to the Remissions database
Background
The make remission function will allow you to manually remit an overpayment or cancel an existing remission. Before making a remission you must follow the guidance in TCM0224140.
Benefits and Credits (B & C) staff must only use the following remission classes
Class 1 - Gone Unknown - Full remission
Class 2 - Death no Estate and Insolvency
Class 5A - Hardship
Class 5B - Official Error - Full or partial remission
Class 11 - Income Support/NTC Nominal set off (Notional Entitlement) - Full or partial remission
Class 13 - Other - Full or partial remission. Used by Compliance only.
B & C staff must not use any other remission classes that are available.
Guidance
Note: Before carrying out any remission action staff will need to check whether the overpayment in dispute relates to a Universal Credit case. For how to do this, use TCM1000630
Important Note: Please note making Remissions is only available for HMRC customers, any case with a UC marker needs to follow SPOC to SPOC process.
Step 1
If you want to make a remission, go to Step 2.
If you want to cancel a remission, go to Step 4.
If you are dealing with an expired BF following setting an appeals marker relating to cross award recovery, go to Step 5.
If you are dealing with an expired BF because you are waiting for debt to transfer to DWP, go to Step 7
Step 2
Access the ‘View Claim Summary - Signals’ screen to check if the overpayment in dispute has been transferred for Cross Award Recovery, for how to do this use TCM1000117.
If the overpayment in dispute has been selected for cross award recovery, go to Step 3.
If the overpayment in dispute has not been selected for cross award recovery, go to Step 5.
If the overpayment in dispute relates to a Universal Credit case, go to Step 5.
Step 3
Calculate the amounts to remit, for how to do this follow the guidance in TCM0224140.
select the claim and award period that the dispute relates to
add an appeal marker to the claim, for how to do this use TCM1000444
update Household notes with message ON19. For how to do this, use TCM1000001
BF overnight
take no further action.
Note: The application of the appeal marker will move the overpayment from the current ongoing claim to the claim from where the overpayment was transferred.
Step 4
Access ‘Make remission’ function, for how to do this use TCM1000221.
select the remission that you want to cancel
select ‘Cancel’ remission
select ‘OK’
take no further action.
Step 5
Calculate the amount of overpayment to be remitted, for how to do this follow the guidance in TCM0224140.
If you need to amend an existing remission that does not relate to a Universal Credit case
make a note of the remission amount you are going to cancel
access the ‘Make Remission’ function, for how to do this use TCM1000221
select the relevant award
cancel the existing remission by selecting ‘Cancel Remission’
enter the relevant remission class
enter revised remission amount
enter the relevant remission code
select ‘OK’
go to Step 6.
If you need to make a full remission or partial remission that does not relate to a Universal Credit case
access the ‘Make Remission’ function, for how to do this use TCM1000221
enter the relevant remission class
enter the amounts of WTC and CTC to be remitted
select ‘OK’
got to Step 6.
If you need to amend an existing remission and the overpayment relates to a Universal Credit case
make a note of the remission amount you are going to cancel
go to Step 7.
If you need to make a full remission and the overpayment relates to a Universal Credit case
make a note of the amount you are going to remit
go to Step 7.
Step 6
If you receive the error message 'Amount entered cannot be greater than amount of overpayment'
check the remaining tax credit overpayment
revisit remission calculation
go back to Step 5.
If you do not receive an error message, go to Step 8
Step 7
Before carrying out remission action you will need determine whether the debt amount has transferred to DWP. For how to do this use TCM1000633
If the debt is 'in transit' to DWP
BF the case for 3 days
take no further action.
If the debt is ‘pending transfer’ to DWP
carry out remission action, for how to do this use TCM1000627
go to Step 8.
If the debt has transferred to DWP
carry out remission action, for how to do this use TCM1000627
go to Step 8.
Step 8
If the overpayment in dispute relates to cross award recovery
lift the appeal marker. For how to do this use TCM1000453
complete the remissions database for every overpayment you remit and any amounts to be recovered
take no further action.
If the overpayment in dispute does not relate to cross award recovery
complete the remissions database for every overpayment you remit and any amounts to be recovered
take no further action.
If the overpayment in dispute relates to a Universal Credit case
complete the remissions database for every overpayment you remit and any amounts to be recovered
take no further action.