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HMRC internal manual

Debt Management and Banking Manual

HM Revenue & Customs
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Pre-enforcement: coding out: Self Assessment (SA) and Tax Credit (TC) overpayments: further TC points: coding out rejections and minus type 16 remissions

Receipt of coding out rejection after overpayment has been accepted by NPS for coding out

There will be occasions where overpayments that have been accepted for coding out by NPS(PAYE) may later be removed from the PAYE code before coding out commences on 6 April. This might be because the customers’ circumstances have changed; for example, deceased or another higher priority debt is now included in the code. If this happens NPS will send an update to NTC notifying that the overpayment is no longer accepted for coding out.

NTC will:

  • automatically minus remit the full amount of the type 16 remission and the amount will then become collectible again
  • may send this overpayment that now exists to IDMS and if so, include a note to say that a previous attempt has been made to code out the overpayment.

The overpayment may be sent down another campaign process and could go back for coding again at a later date.

Overpayment is reduced after accepted by NPS for coding out

There may be occasions when an overpayment is to be reduced, for example when Benefits and Credits (B&C) has resolved a dispute. If the overpayment has been accepted for coding out, a type 16 remission will be posted on NTC.

B&C will contact DMB requesting that coding out is cancelled on NPS and the remission is cancelled on NTC. Once B&C reduce the overpayment, DMB decides the next appropriate action to pursue any collectible balance.