Overpayments: Benefits

Overpayments: Tax credits

If the Tax Credit Office has paid you too much tax credit, it is likely that they will expect you to pay it back.  They will write to you about the overpayment and what happens next. 

What can I do if I disagree?  

If the Tax Credit office made a mistake or gave you incorrect advice, you can ask them to look at their decision again. This is called a 'dispute'.   

Get more information on how to dispute a tax credit overpayment on the gov.uk website.

How are overpayments collected?   

If you are still getting Tax Credit, the Tax Credit Office will take money off future payments until the overpayment is paid off. If you are no longer getting Tax Credit, the Tax Credit Office will send you bill and expect you to pay in one lump sum.  
Get more information on how the Tax Credit Office collect overpayments on the gov.uk website.

What can I do if repayment is difficult?  

If you are in hardship, call the Tax Credit Helpline on 0345 300 3900. You can also use Relay UK if you cannot hear or speak on the phone: dial 18001 then 0345 300 3900.

They may agree to take less off your future payments or to give you longer to pay a bill.  

 Is a Tax Credit overpayment always a priority debt?  

Yes, the Tax Credit Helpline will take your circumstances into account if you call them and try to make an arrangement that suits you. But, if you ignore the debt, Her Majesty’s Revenue and Customs (HMRC) have the same powers to collect it as if it were income tax arrears.