TCM0230060 - Payment - overpayments (Q-Z): overpayments - remissions - make or cancel

Checklist

Before you follow this guidance make sure you

  • have the correct user roles to follow this guidance
  • have access to the Remissions database

Background

The make remission function will allow you to manually remit an overpayment or cancel an existing remission. Before making a remission you must follow the guidance in TCM0224140.

Benefits and Credits (B & C) staff must only use the following remission classes

  • Class 1 - Gone Unknown - Full remission
  • Class 2 - Death no Estate and Insolvency
  • Class 5A - Hardship
  • Class 5B - Official Error - Full or partial remission
  • Class 11 - Income Support/NTC Nominal set off (Notional Entitlement) - Full or partial remission
  • Class 13 - Other - Full or partial remission. Used by Compliance only.

B & C staff must not use any other remission classes that are available.

Guidance

Note: Before carrying out any remission action staff will need to check whether the overpayment in dispute relates to a Universal Credit case. For how to do this, use TCM1000630

Step 1

If you want to make a remission, go to Step 2.

If you want to cancel a remission, go to Step 4.

If you are dealing with an expired BF following setting an appeals marker relating to cross award recovery, go to Step 5.

If you are dealing with an expired BF because you are waiting for debt to transfer to DWP, go to Step 7

Step 2

Access the ‘View Claim Summary - Signals’ screen to check if the overpayment in dispute has been transferred for Cross Award Recovery, for how to do this use TCM1000117.

If the overpayment in dispute has been selected for cross award recovery, go to Step 3.

If the overpayment in dispute has not been selected for cross award recovery, go to Step 5.

If the overpayment in dispute relates to a Universal Credit case, go to Step 5.

Step 3

Calculate the amounts to remit, for how to do this follow the guidance in TCM0224140.

  • select the claim and award period that the dispute relates to
  • add an appeal marker to the claim, for how to do this use TCM1000444
  • update Household notes with message ON19. For how to do this, use TCM1000001
  • BF overnight
  • take no further action.
    Note: The application of the appeal marker will move the overpayment from the current ongoing claim to the claim from where the overpayment was transferred.

Step 4

Access ‘Make remission’ function, for how to do this use TCM1000221.

  • select the remission that you want to cancel
  • select ‘Cancel’ remission
  • select ‘OK’
  • take no further action.

Step 5

Calculate the amount of overpayment to be remitted, for how to do this follow the guidance in TCM0224140.

If you need to amend an existing remission that does not relate to a Universal Credit case

  • make a note of the remission amount you are going to cancel
  • access the ‘Make Remission’ function, for how to do this use TCM1000221
  • select the relevant award
  • cancel the existing remission by selecting ‘Cancel Remission’
  • enter the relevant remission class
  • enter revised remission amount
  • enter the relevant remission code
  • select ‘OK’
  • go to Step 6.

If you need to make a full remission or partial remission that does not relate to a Universal Credit case

  • access the ‘Make Remission’ function, for how to do this use TCM1000221
  • enter the relevant remission class
  • enter the amounts of WTC and CTC to be remitted
  • select ‘OK’
  • got to Step 6.

If you need to amend an existing remission and the overpayment relates to a Universal Credit case

  • make a note of the remission amount you are going to cancel
  • go to Step 7.

If you need to make a full remission and the overpayment relates to a Universal Credit case

  • make a note of the amount you are going to remit
  • go to Step 7.

Step 6

If you receive the error message ‘Amount entered cannot be greater than amount of overpayment’

  • check the remaining tax credit overpayment
  • revisit remission calculation
  • go back to Step 5.

If you do not receive an error message, go to Step 8

Step 7

Before carrying out remission action you will need determine whether the debt amount has transferred to DWP. For how to do this use TCM1000633

If the debt is ‘in transit’ to DWP

  • BF the case for 3 days
  • take no further action.

If the debt is ‘pending transfer’ to DWP

  • carry out remission action, for how to do this use TCM1000627
  • go to Step 8.

If the debt has transferred to DWP

  • carry out remission action, for how to do this use TCM1000627
  • go to Step 8.

Step 8

If the overpayment in dispute relates to cross award recovery

  • lift the appeal marker. For how to do this use TCM1000453
  • complete the remissions database for every overpayment you remit and any amounts to be recovered
  • take no further action.

If the overpayment in dispute does not relate to cross award recovery

  • complete the remissions database for every overpayment you remit and any amounts to be recovered
  • take no further action.

If the overpayment in dispute relates to a Universal Credit case

  • complete the remissions database for every overpayment you remit and any amounts to be recovered
  • take no further action.