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Version 1.0

Changes to previous version - new guidance

Step 1

Convert the EU Member State reimbursement to sterling using the daily exchange rates

If the amount converted is greater than the amount of Child Tax Credit (CTC) arrears reimburse the EU Member State聽with the full amount of arrears of CTC聽

If the amount converted is less than the amount of CTC arrears, deduct the amount of CTC arrears from the EU Member State聽request and reimburse the difference聽

Note: You can only pay a reimbursement to the EU Member State聽from arrears of CTC that have been withheld. If the arrears available are less than the amount requested. The EU Member State聽will have to pursue recovery from the customer