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HMRC internal manual

Tax Credits Manual

How to identify if an overpayment has been transferred to Department for Work and Pensions (DWP)/Department for Communities (DfC) for collection

If a customer has migrated to Universal Credit (UC) with an outstanding tax credit debt, the amount will be transferred to the Department for Work and Pensions (DWP) and collected through UC payments.  DWP will write to the customer directly.

Note: for customers in Northern Ireland, any outstanding tax credit debt will be transferred to the Department for Communities (DfC) and collected through UC payments. DfC will write to these customers directly. 

Step 1

On the ‘Function Menu’

  • Select ‘View Overpayment’. You will be taken to the ‘Key Entry Data’ screen
  • enter the customer’s NINO
  • select the ‘All’ checkbox
  • select ‘OK’

If you are taken to the ‘View Overpayment’ screen, go to Step 2.

If you are taken to the ‘Select Individual’ screen

  • select the relevant individual
  • select ‘OK’

If you are taken to the ‘Select Award’ screen

  • select the relevant award
  • select ‘OK’ – this will take you to the ‘View Overpayment’ window

then

Step 2

If the ‘View Overpayment – Signals’ box displays

  • check if the ‘App1 Debt transferred to DWP’ or ‘App 2 Debt transferred to DWP’ tick box is marked – this will indicate that any debt from any year has been transferred to Department for Work and Pensions(DWP)/Department for Communities (DfC)
  • select OK – the ‘View Overpayment – Signals’ box will clear and the ‘View Overpayment’ window will display, go to Step 3.

If the ‘View Overpayment – Signals’ box does not display, go to Step 3.

Step 3

In the ‘View Overpayments’ screen

  • check if the ‘Suspended Pending Transfer to DWP’ in the ‘Recovery Status’ box is checked – this indicates that the overpayment has been suspended and is waiting to be transferred to DWP/DfC.
  • go to Step 4.

Step 4

If there is more than one award

  • go back to Step 1 and select the next relevant award.

If there is not more than one award

  • return to the guidance you were following.