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HMRC internal manual

Debt Management and Banking Manual

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

Amount coded out by NPS matches the amount outstanding on SA

Once SA debts are accepted for coding out, NPS(PAYE) will send an update to the SA system (CESA). CESA will automatically record a type 16 remission against the debts that NPS has coded out. The description for this type of remission will appear on the SA ‘View Statement’ screen as ‘Amount to be collected through tax code during YY/YY’.

Amount coded out by NPS(PAYE) and the type 16 remission is different to the amount outstanding on SA

The amount might vary either because:

  • of an amendment to the SA charge since IDMS sent the debt to NPS(PAYE) for coding out
  • there is a mismatch between the amounts on IDMS and SA.

If the amount NPS has coded out is:

  • less than the amount outstanding on the matched SA charge, CESA will process a type 16 remission of the amount coded out by NPS - any balance will follow normal debt pursuit processes and if necessary be picked up in a later campaign
  • £10 or less, greater than the amount outstanding on the matched SA charge, CESA will accept the remission and automatically remit the lesser amount
  • more than £10 greater than the amount outstanding on the matched SA charge, CESA will reject the remission on to SA work list W012 ‘Remission and remission cancellation quality assurance’ for manual review.

Multiple type 16 remissions on CESA

It will be possible to see more than one remission type 16 against the same SA debt. This might happen where an SA debt has been coded out and then increases, and the additional amount is sent to IDMS. IDMS could then send the additional amount to NPS for coding out. The amounts can either be coded out in the same or different PAYE tax years.

In either case, SA debts for the same year and charge type, sent for coding at different points in time by IDMS, will appear on SA as separate remissions. For example:

Tax year 2010-11 balancing payment

31/01/12 Balancing payment due £500
     
30/08/12 Rem 16 collected in tax code 2013-14 £500
15/09/12 Balancing payment increase £350
30/11/12 Rem 16 collected in tax code 2013-14 £350

SA updates to IDMS

Once an amount has been remitted type 16 on CESA, an overnight update will close the related IDMS work item.