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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

How to make or cancel remission when debt has transferred to DWP

Step 1

On the ‘Function Menu’

  • select ‘payments’ on the tool bar
  • select ‘Make Remission’ from the options available to you
  • enter the customer’s NINO
  • select the ‘All’ checkbox
  • select ‘OK’. You will be taken to the ‘Select Award’ screen
  • select the award that you want to make or cancel the remission
  • select ‘OK’, you will be taken to the ‘Account Summary’ screen.
  • go to .

Step 2

If you need to amend an existing remission

  • go to .

If you need to make a full remission or partial remission

  • go to .

Step 3

On the ‘Account Summary’ screen

  • select ‘Cancel Remission’. You will be taken to the ‘Cancel Remission’ screen
  • select the remission that you want to cancel
  • select ‘Ok’. You will be taken back to the ‘Account Summary’ screen
  • select ‘OK’. This will update the computer with the change
  • go to

Step 4

On the ‘Account Summary’ screen

  • select ‘Remit’. You will be taken to the ‘Create Remission’ screen
  • enter the relevant remission code
  • enter the amounts of WTC and CTC to be remitted
  • place a tick in the ‘Remission’ to affect DWP debt’ box

Note: for single claimants this box will be pre-populated and greyed out. The same will apply with joint claims where both claimants have Universal Credit interest

Note: for joint claims where only one person has Universal Credit interest, there may be occasion when remission only applies to the remaining tax credit debt. In these cases do not place a tick in the ‘Remission to affect DWP debt’ box

  • select ‘OK’
  • go to

Step 5

If you receive the error message ‘Amount entered cannot be greater than amount of overpayment’

  • check the remaining tax credit overpayment
  • revisit remission calculation
  • go back to .

If you receive the error message ‘Amount entered cannot exceed the amount of tax credit paid’

  • check whether the ‘Remission to affect DWP debt’ box is ticked or revisit the amounts entered
  • go back to .

If you receive the error message ‘Amount entered cannot be greater than amount of overpayment plus any amount transferred to DWP’

  • check the remaining tax credit overpayment
  • check the amount of debt that has been transferred to DWP. For how to do this use TCM1000633
  • revisit remission calculation
  • go back to .

If you do not receive an error message

  • You will have been taken back to the ‘Account Summary’ screen. Select ‘OK’
  • go to .

Step 6

You will need to record the remission

  • complete the remissions database for every overpayment you remit and any amounts to be recovered
  • take no further action.