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HMRC internal manual

Debt Management and Banking Manual

From
HM Revenue & Customs
Updated
, see all updates

Debt and return pursuit: Child Benefit overpayments: disputes: abatement

Where a customer claims that entitlement to another benefit would have existed, for all or part of the period of the overpayment, recovery of the overpayment can be reduced in part or in full as appropriate.

Abatement:

  • is at the discretion of HMRC
  • is given following a decision by the DM acting on behalf of HMRC
  • can only be considered where an overpayment decision letter has been issued to the customer.

HMRC must determine if the potential beneficiary (who could be either the customer or a member of the family) would have satisfied the basic conditions for entitlement to the unclaimed benefit.

The Child Benefit guidance at CBPG75157 refers to abatement.

Representation from the customer

Abatement can only be applied if the customer or their representative has asked about the possible entitlement to another implied benefit, for all or part of the overpayment.

If representation is made by the customer, refer the case to the decision maker.

The decision maker will consider if the basic conditions for accepting abatement by notional entitlement are satisfied and will return then advise DM of their decision.

Basic conditions are satisfied

Basic conditions satisfied and no balance to recover

  • Update the OPREC notepad.
  • Update OPREC to show the amount abated.
  • Email your manager details of the abatement.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Basic conditions satisfied and balance to be recovered

  • Update OPREC notepad.
  • Update OPREC to show the amount abated.
  • Email your manager details of the abatement.

If:

  • the customer has current Child Benefit entitlement:

    • update OPREC set delayed code 2, BF Code 1 and set BF for six weeks
    • if the BF expires, follow direct recovery guidance in DMBM557500
  • no Child Benefit entitlement exists:

    • update OPREC set delayed code 1, BF Code 1 and set BF for six weeks
    • if the BF expires, continue recovery action as in DMBM557870.

Basic conditions are not satisfied

Update the OPREC notepad and if:

  • the customer has current Child Benefit entitlement:

    • update OPREC set delayed code 2, BF Code 1 and set BF for six weeks
    • if the BF expires, follow direct recovery guidance in DMBM557500
  • no Child Benefit entitlement exists:

    • update OPREC set delayed code 1, BF Code 1 and set BF for six weeks
    • if the BF expires, continue recovery action as in DMBM557870.