Make Or Cancel A Remission (Info)

There is an Action Guide for this subject, click on 'Next Page' to access it

Function MAKE REMISSION will allow you to

  • Manually remit an overpayment

Or

  • Cancel a remission that has already been set in this function

This guidance does not inform you of how to decide which remission class to use. Before a remission can be recorded you must

Or

This will enable you to select the correct remission class from the remission list. Some of the remission classes are full remissions and will remit the whole overpayment whilst some of the classes are partial remissions. You will have to enter the calculated amount of the overpayment for partial remissions.

Tax Credit Office ( TCO) staff must only use the following remission classes

  • Class 1 Gone Unknown – Full remission
  • Class 2 Death no Estate and Insolvency – Full remission
  • Class 5B Official Error – Full or Partial remission
  • Class 11 Income Support / NTC Nominal set-off – Full or Partial remission
  • Class 13 Other - Full or Partial remission. Used by Compliance only

TCO staff must not use any of the other remission classes that are available. These are used by Receivables staff only

Remission classes 1 (Gone Unknown) and 2 (Death No Estate and Insolvency) can be recorded on any award from Current Year (CY) to CY-6 inclusive provided the

Or

And

  • The CY award is not in payment. The award must be overpaid

Remission class 5B (Official Error) can be recorded on any award from CY to CY–6 inclusive irrespective of whether

  • Entitlement has ceased

Or

  • Whether the CY award is in payment. The award does not have to have been overpaid, but the remission amount cannot exceed the amount of tax credits paid to the claimant

For example, if the official error caused an overpayment of £500.00, but there was also an underpayment during that award period which led to a net overpayment of £200.00. Using remission class 5B will allow you to still remit the £500.00. (All other classes would only allow a maximum remission of £200.00). Validation will only prevent a remission of class 5B if the amount entered is more than the total award amount paid during that award period

Remission classes 11 (Income Support / Nominal Set – Off) and 13 (Other) can be recorded on any award from CY to CY–6 inclusive provided

  • The award entitlement is terminated

Or

  • The award period has ended. The remission can be recorded irrespective of whether entitlement is finalised or whether the CY award is in payment. The award must be overpaid

If you cancel a remission, you must select the correct remission class to be cancelled.

From Function MAKE REMISSION you can obtain the following information

  • Account status
  • Amount of the award
  • Payments Out – this will be up to the date of viewing irrespective of the method of payment
  • Total amount of an overpayment for a previous award period that has been recovered from this award to date
  • Payments Still to be Issued
  • Payments in that award period - this will be if the claimant has repaid any tax credits
  • Total amount of the adjustments that have been recorded on the accounting record - this will be for remissions that have been selected
  • Total amount of the overpayment on this award that has been recovered to date from other award periods
  • Total amount of overpayment outstanding. This will be split into 3 fields

And

  • A combined total of WTC / CTC

Note: Where a payment adjustment has been applied to this award period, these figures will not be representative of the true accounting picture

You will only be able to apply or cancel one remission each time Function MAKE REMISSION is accessed

Where the remission applies to both WTC and CTC, you can apply the remission to each tax credit in any order, and where the remission crosses more than one award period, you should remit the overpayment from the earliest award period first

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