Explanation Of Overpayment - Referral Or Letter Received (Info)

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Use this guidance if a claimant has not been provided with an explanation for an overpayment that has arisen against their tax credit payments. The request could come from

• An Enquiry Centre
   
• A Contact Centre
   
• Debt Management and Banking (DMB)

Or

• A claimant’s letter requesting an explanation of the overpayment

The Enquiry Centre, Contact Centre and DMB will send a referral form to you to enable you to provide the claimant with an explanation of the overpayment.
 

You must determine the reason for the overpayment and issue a written explanation of the overpayment, to the claimant, with the Code of Practice 26 (COP 26) ‘What happens if we have paid you too much tax credit?’

You can calculate the amount of overpayment that falls into the following two categories and automatically remit the amount on the computer, if you determine that the overpayment is partly or fully covered by one of the following overpayment reasons

• Cross border / family supplement cases
   
• No NINO

If you cannot automatically remit all of the overpayment you must also issue a Remission request form to the claimant titled ‘Request to reconsider recovery of overpaid tax credits?’

If the claimant has been declared bankrupt or sequestrated you must work the explanation first