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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 SA points: impacts on CESA of NPS(PAYE) reconciliation

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

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. Any credits are automatically allocated with an EDP of 6 April in the year in which coding out commenced.

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.

Credit posting on CESA

Payments collected in NPS(PAYE) and allocated on CESA will be shown:

  • as a credit type posting of ‘PRC’ (PAYE reconciliation credit)
  • with an Effective Date of Payment (EDP) of 6 April in the year in which the debt is coded out.

The new posting type ‘PRC’ will be treated in the same way as any other payment posting and can be reallocated or repaid as per existing guidance.

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SA notes

Receipt of the payment collected will not create an SA note on CESA.

CESA will only create an automatic SA note when the remission is cancelled but no credit is created. You will see ‘0.00 collected in YY/YY against coded debt of ‘amount’ ‘debit type’ YY/YY.’ So for example, you will see ‘0.00 collected in 12/13 against coded debt of £1000 BCD 09/10’.

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SA Online changes

CESA will send an update to SA Online reflecting details of the minus type 16 remissions and credit posting.

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SA statement impacts

Receipt of the reconciliation minus remission and payment will not prompt the issue of a SA monthly statement; however, it will trigger a periodic statement.

For more information about statement issue, see SAM131026.