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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: tax credits functionality to manually cancel type 16 remissions in full

There may be circumstances when it is appropriate to cancel the debt that has been accepted for coding out by NPS(PAYE) and cancel the type 16 remission on TC. To cancel the coding out, you must always ensure that when you cancel a type 16 remission on TC, you always cancel the coding out on NPS(PAYE) so that the records remain in step.

DTO staff can cancel the type 16 remission in the same way as any other type of remission.

From the ‘Payments’ heading:

  • Select ‘Make Remission’ from the drop down menu
  • Enter the NINO and select ‘All’
  • Click [OK]
  • Highlight the relevant Award Period
  • Click [OK].

From the ‘Account Summary’ page:

  • Click ‘Cancel Remission’
  • Select the relevant work items to be minus remitted
  • Click [OK]

You will now be presented with an advisory message:

  • “This is a Class 16 Remission - are you sure you wish to cancel this?”


  • Click [OK].

The remission details will be updated immediately.

Note: Take care when cancelling a type 16 remission, as once you have done this you will not be able to create a type 16 remission.