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HMRC internal manual

Debt Management and Banking Manual

Pre-enforcement: coding out: Self Assessment (SA) and Tax Credit (TC) overpayments: debt accepted for coding

If the debt is accepted for coding out, NPS(PAYE) will store details of the debt to be included in the next annual coding run and will:

  • create and display accounting entries in NPS(PAYE) Outstanding Debt Summary screen
  • display debts individually in the Outstanding Debt Details screen
  • record the details in Contact History
  • notify the Head of Duty (HoD) record to record a type 16 remission against the charges coded.

The type 16 remission will be recorded on the HoD CESA or NTC.

The IDMS work items will be closed in the overnight run with the following Action History note:

  • SA cases- ‘Amount accepted for potential coding out £00.00’ Type Class 16 remission
  • TC cases- ‘Amount accepted for potential coding out 0.00’ for claimant (claimant no.) Type 16 remission.