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HMRC internal manual

Debt Management and Banking Manual

Pre-enforcement: coding out: Self Assessment (SA) and Tax Credit (TC) overpayments: further TC points: impacts on tax credits of NPS reconciliation

NPS(PAYE) sends details of the payments collected in the PAYE tax code to TC.

The HoD system receives details of the credit collected in NPS(PAYE), automatically cancels the type 16 remission in full and allocates the credit to record.

If the debt is collected in full, no further action is required on the record.

If only part or none of the debt is collected, the HoD will send details of the reinstated debt to IDMS as per existing IDMS rules.

IDMS will recognise that a previous attempt has been made to code out this debt and the work item will be selected by campaigns for the next appropriate campaign action.

Payment posting on NTC

Payments collected in NPS(PAYE) and allocated on NTC will be included in the ‘Payments In’ total shown on the ‘View Award Period Summary’.

Payments collected in NPS(PAYE) and allocated on NTC will be shown on ‘View Award Period’ posting:

  • The amount will either be the amount collected via NPS or 0.00.
  • As a posting type of either:

    • ‘PICW’ description ‘Payment In Coding Out WTC’
    • ‘PICC’ description ‘Payment In Coding Out CTC’.