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 (eg collect money you owe from your earnings) if you don’t repay your tax credits.
Overpayments usually happen if you:
- don’t report a change in your circumstances
- make a mistake on your claim form
- don’t renew your tax credits on time
The Tax Credit Office will tell you what you owe and how to repay the money.
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.