1. Overview

Universal Credit will replace tax credits, Housing Benefit and some other benefits. You can’t claim Universal Credit and these other benefits at the same time.

Your tax credits award will end if:

  • you or your partner claim Universal Credit
  • you move in with a partner who has made a claim for Universal Credit

Once you’ve applied for Universal Credit, you’ll get a letter from HMRC (called your ‘award review’) to end your tax credit award. This is different to your normal tax credits renewal letter.

You’ll need to check and confirm your personal details and income. How you work out your income will depend if you’re:

Tax credit overpayments

Your award review letter may tell you that you need to pay back any tax credits overpayments when you end your tax credits.

You can also get a letter at a later date telling you that you need to repay an overpayment if:

  • you had to make an ‘award declaration’, for example if you’re self-employed
  • you had to report any changes from your award review

You’ll be told when repayments start to come out of your Universal Credit.

If you’re not claiming Universal Credit

You can end your tax credits award by opting out during the renewal period for tax credits each year.

You’ll have to make a new claim to start getting tax credits again. You won’t be able to make a new tax credits claim if Universal Credit is available in your area.