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HMRC internal manual

Debt Management and Banking Manual

Debt and return pursuit: tax credits: general: remissions

If a claimant:

  • has no means to repay an overpayment
  • has no assets
  • recovery of the overpayment would cause hardship as in COP26

transfer the debt-related work items to MU 368407. DTO Liverpool will review cases in that MU and where it is decided a debt is suitable for remission they will move it the appropriate Remission MU.

The Tax Credit Office (TCO) can also use Types 1, 2, 5B and 11 to remit tax credit overpayments.

Claimant Compliance Offices can use Type 13 to informally discharge an overpayment because the NTC system does not have an informal discharge function. This remission type is used when a corresponding debt is set up in ETMP by Benefits & Credits (B&C).