CCM15595 - Undisclosed Partners: Recovery of Overpayment for cases opened before 17 May 2007 - Settlement With A Penalty

If you are seeking a letter of offer the statement of overpaid credits and the figures on your form 94 NTC should refer to the net overpayment. You will need to remove the entire overpayment of the NTC system otherwise there will be double recovery. You should use Make Remission to remit the amounts of the notional entitlement using Class 11. In addition, you will need to remit the amounts included in your letter of offer using Class 13. The total of the remissions must equal the amount of the gross overpayment.

Having made these remissions you should then obtain a letter of offer to include the net overpayment, the appropriate penalty and any interest.

If the customer refuses to make an offer you will need to cancel the amounts remitted under class 13 and then follow the guidance at CCM15585 regarding recovering the overpayment. If a formal penalty determination is considered appropriate you should follow the guidance at CCM14440.

If the customer is prepared to sign a letter of offer you can include the net overpayment for the current year if the customer is willing to include this amount. However, we have no statutory right to recover this amount until after the year end and if the customer is not willing to have this included in the letter of offer you should handle the CY element in accordance with CCM15585.