Pre-enforcement: coding out: Self Assessment (SA) and Tax Credit (TC) overpayments: NPS(PAYE) will perform a hypothetical call to code
IDMS will send details of each debt separately to NPS(PAYE) subject to the total being between £100 and £17,000.00 to check the customer’s record to see if the debt can be coded out in the current year plus one.
- trace and match the debt to the customer’s record
- check customer is not deceased
- check customer has a PAYE source against which the debt can be coded
conduct a coding check taking into account the customer’s level of income and other underpayments to be coded to ensure the:
- total of the amount is up to £17,000
- inclusion of the debt does not take more than 50 per cent of their income.
NPS(PAYE) will prioritise debts to be coded out in the following order:
- PAYE Potential Underpayments
- PAYE Underpayments
- SA Balancing payments
debts from IDMS in the following order:
- earliest date sent
- largest debt
- class 2 NIC
- SA debt over tax credit overpayment if both on the same day for same amount.