Tax credits overpayments
If you cannot afford your repayments
You can ask to repay what you owe over a longer period of time if you’re having financial difficulty. This will mean you pay less each week or month.
You may be asked about:
- any savings and income you have - including benefits and pensions
- your living expenses - including rent, mortgage or childcare payments and household costs
- any other repayments you have to make - including loans, credit cards and utility bill repayments
How you ask for your repayments to be reconsidered depends on whether you still get tax credits, Universal Credit or neither.
If you still get tax credits
If HMRC has reduced your tax credits to pay back an overpayment, you can ask them to reconsider:
- by using their online service - you need your Government Gateway user ID and password - if you do not have one, you can create one when you use this service
- by phone
If HMRC give you more time to pay back what you owe, this will mean they take less money from your tax credits each week or month.
You will usually receive a decision within 14 working days.
If you are still having financial difficulty at the end of the financial year (5 April), you will need to ask HMRC to reconsider your payments again.
If you have moved to Universal Credit
Contact the Department for Work and Pensions (DWP) Debt Management centre if you cannot afford your repayments.
DWP Debt Management contact centre
Telephone: 0800 916 0647
Textphone: 0800 916 0651
NGT text relay (if you cannot hear or speak on the phone): 18001 then 0800 916 0647
Video relay service for British Sign Language (BSL) users - check you can use the service
Calling from abroad: +44 (0)161 904 1233
Monday to Friday, 8am to 7.30pm
Find out about call charges
If you do not get tax credits or Universal Credit
Call the tax credits payments helpline to ask HMRC to reconsider.
If you’ve received a ‘TC1131’ letter, this means your debt has passed to DWP. Call the DWP Debt Management contact centre to discuss your options. Call Department for Communities (DfC) Debt Management if you’re in Northern Ireland.