SolvedTCM1000627 | How to make or cancel remission when debt has transferred to the Department for Work and Pensions (DWP)/Department for Communities (DfC)
From HM Revenue & Customs · Tax Credits Manual
If a customer has migrated to Universal Credit (UC) with an outstanding tax credit debt, the amount will be transferred to the Department for Work and Pensions (DWP) and collected through UC payments.
Note: for customers in Northern Ireland, any outstanding tax credit debt will be transferred to the Department for Communities (DfC) and collected through UC payments.
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
On the ‘Function Menu’
select ‘payments’ on the tool bar
select ‘Make Remission’ from the options available to you
enter the customer’s NINO
select the ‘All’ checkbox
select ‘OK’. You will be taken to the ‘Select Award’ screen
select the award that you want to make or cancel the remission
select ‘OK’, you will be taken to the ‘Account Summary’ screen.
go to Step 2.
Step 2
If you need to amend an existing remission
go to Step 3.
If you need to make a full remission or partial remission
go to Step 4.
Step 3
On the ‘Account Summary’ screen
select ‘Cancel Remission’. You will be taken to the ‘Cancel Remission’ screen
select the remission that you want to cancel
select ‘Ok’. You will be taken back to the ‘Account Summary’ screen
select ‘OK’. This will update the computer with the change
go to Step 4
Step 4
On the ‘Account Summary’ screen
select ‘Remit’. You will be taken to the ‘Create Remission’ screen
enter the relevant remission code
enter the amounts of WTC and CTC to be remitted
place a tick in the ‘Remission’ to affect DWP debt’ box
Note: for single claimants this box will be pre-populated and greyed out. The same will apply with joint claims where both claimants have Universal Credit interest
Note: for joint claims where only one person has Universal Credit interest, there may be occasion when remission only applies to the remaining tax credit debt. In these cases do not place a tick in the ‘Remission to affect DWP debt’ box
select ‘OK’
go to Step 5
Step 5
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 4.
If you receive the error message ‘Amount entered cannot exceed the amount of tax credit paid’
check whether the ‘Remission to affect DWP debt’ box is ticked or revisit the amounts entered
go back to Step 4.
If you receive the error message ‘Amount entered cannot be greater than amount of overpayment plus any amount transferred to DWP’
check the remaining tax credit overpayment
check the amount of debt that has been transferred to DWP/DfC. For how to do this use TCM1000633
revisit remission calculation
go back to Step 4.
If you do not receive an error message
You will have been taken back to the ‘Account Summary’ screen. Select ‘OK’
go to Step 6.
Step 6
You will need to record the remission
complete the remissions database for every overpayment you remit and any amounts to be recovered
take no further action.