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HMRC internal manual

Tax Credits Manual

How to check if the recovery of an overpayment has been suspended due to the debt being transferred to the 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
  • go to Step 2.

Step 2

In the ‘View Overpayment’ screen

  • select ‘Details’ pushbutton. You will be taken to the appropriate screen detailing the recovery details

If you are taken to the ‘View Overpayments – Direct’ screen, go to Step 3.

If you are taken to ‘View Overpayment – Cross Year’ screen or the ‘View Overpayment – In Year’ screen

  • take no further action.

Step 3

If ‘Pending Transfer to DWP’ is displayed in the ‘Suspension Reason’ box, this indicates that the overpayment is waiting to be transferred to DWP/DfC for collection.

  • take no further action.

If ‘Pending Transfer to DWP’ is not displayed, this indicates that there is no overpayment waiting to be transferred to DWP/DfC for collection.

  • take no further action.