How to repay your tax credits
The Tax Credit Office will write to tell you what you owe and how to repay.
How you repay depends on whether you still get tax credits, Universal Credit or neither.
Call the helpline if you:
- think the Tax Credit Office made a mistake
- already have a repayment plan but you get another letter - you may need to set up a new plan
If you still get tax credits
HMRC will automatically reduce your future tax credit payments until you’ve paid back the money you owe.
The amount they’ll reduce your tax credit payments by usually depends on how much you currently get and your household income.
|£20,000 or less and you get maximum tax credits||10%|
|£20,000 or less and you get less than the maximum tax credits||25%|
|More than £20,000||50%|
If you only get the family element of Child Tax Credit, your payments will be reduced by 100% whatever your income is.
If you’ve moved to Universal Credit
Your future payments will be reduced until you’ve paid back the money you owe.
If you do not get tax credits or Universal Credit
HMRC will send you a ‘notice to pay’ which you should pay within 30 days.
It’s your responsibility to make sure payments reach HMRC on time. Check your bank’s transaction limits and processing times.
If you do not pay in time, HMRC can take action to recover the money you owe.
Call the helpline if you want to make extra payments to clear the debt more quickly.
There are several ways to repay.
You can call the helpline to set up a Direct Debit.
You’ll need your tax credit reference number - you’ll find it on your notice to pay.
It takes up to 5 working days to set up. Payments appear on your statements as ‘HMRC NDDS’.
Online and telephone banking (Faster Payments)
Pay to HMRC’s account and use your tax credit reference number (found on your notice to pay) as the payment reference.
|Sort code||Account number||Account name|
|08 32 10||12001039||HMRC Cumbernauld|
Payments made by Faster Payments will usually reach HMRC on the same or next day, including weekends and bank holidays.
If you’re paying from an overseas account, you can pay HMRC in sterling or another currency.
|Account number (IBAN)||Bank identifier code (BIC)||Account name|
HMRC’s bank address is:
Barclays Bank PLC
1 Churchill Place
At your bank or building society
Pay at your branch by cash or cheque along with the HMRC payslip included with your notice to pay.
Make cheques payable to ‘HM Revenue and Customs only’ followed by your tax credit reference number (found on your notice to pay).
HMRC will accept your payment on the date you make it and not the date it reaches HMRC’s account.
By cheque through the post
You can pay by cheque made payable to ‘HM Revenue and Customs only’ followed by your tax credit reference (found on your notice to pay). Also include the payslip HMRC sent to you.
Allow 3 working days for payments to reach HMRC.
Do not fold your payslip or cheque or fasten them together. If you want a receipt, include a note asking for one.
If you do not have a payslip
Include a note with:
- your name, address and contact phone numbers
- your tax credit reference number (found on your notice to pay)
- how much you’re paying
- period you’re paying for