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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: request for coding out of tax credit overpayment

Coding out TC overpayments is at HMRC’s discretion rather than at the customer’s request. It should not be routinely available to customers as an alternative to paying in full or agreeing to a time to pay arrangement.

If a customer contacts DMB to request coding out, you should always try to secure payment in full or an acceptable time to pay arrangement.

Only agree to coding out when you have exhausted all other avenues for payment and you have checked that the customer is in employment.