DMBM618345 - Pre-enforcement: coding out: Self Assessment (SA) and Tax Credit (TC) overpayments: NPS(PAYE) will perform a hypothetical call to code

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IDMS will send details of each debt separately to NPS(PAYE) subject to the total being between £100 and £17,000.00 to check the customer’s record to see if the debt can be coded out in the current year plus one.

NPS(PAYE) will:

• trace and match the debt to the customer’s record
• check customer is not deceased
• check customer has a PAYE source against which the debt can be coded
• conduct a coding check taking into account the customer’s level of income and other underpayments to be coded to ensure the:

• total of the amount is up to £17,000
• inclusion of the debt does not take more than 50 per cent of their income.

NPS(PAYE) will prioritise debts to be coded out in the following order:

• PAYE Potential Underpayments
• PAYE Underpayments
• SA Balancing payments
• debts from IDMS in the following order:

• earliest date sent
• largest debt
• class 2 NIC
• SA debt over tax credit overpayment if both on the same day for same amount.