1. Overview

You might be overpaid tax credits if:

  • there’s a change in your circumstances - even if you report the change on time
  • you or the Tax Credit Office make a mistake
  • you don’t renew your tax credits on time

What to do if you’ve been overpaid

The Tax Credit Office will write to tell you what you owe and how to repay the money. If you think they made a mistake, call the helpline.

If you owe money for an overpayment when you move from tax credits to Universal Credit, you still have to repay the Tax Credit Office until repayments start to come out of your Universal Credit.

You have to repay any tax credits you’re not entitled to. Your future tax credits could go down or stop if you don’t.

HM Revenue and Customs (HMRC) can also take enforcement action (for example by collecting money you owe from your earnings) if you don’t repay your tax credits.

You should contact HMRC if you can’t afford your repayments.