Tax credits overpayments

If you get Universal Credit

After you start getting Universal Credit you’ll get a letter from HM Revenue and Customs (HMRC) telling you how much you owe. The letter is called a ‘TC1131 (UC)’.

The letter may come a few months after you’ve moved to Universal Credit.

If you are already paying a ‘notice to pay’, keep making payments until you get the letter.

After you get the letter, the Department for Work and Pensions (DWP) will reduce your Universal Credit payments until you pay back the money you owe. You do not have to do anything to set this up.

If you’re in Northern Ireland this will be handled by the Department for Communities.

If you are repaying tax credits overpayments from different years, you may get more than one letter - you must repay each of these debts.

Contact DWP Debt Management if you cannot afford your repayments.

DWP Debt Management contact centre
Telephone: 0800 916 0647
Textphone: 0800 916 0651
Calling from abroad: +44 (0)161 904 1233
Monday to Friday, 8am to 7:30pm
Saturday, 9am to 4pm
Find out about call charges

If you have an existing payment plan

If you have a repayment plan for your tax credits debt (also known as a ‘Time to Pay’ arrangement), it will end after you get the letter from HMRC. This applies whether the plan is with HMRC or an independent debt collector.

You must cancel any standing orders you’ve set up to repay the debt. HMRC will cancel any Direct Debits.

If you claimed tax credits as a couple

The debt will be split in half between you. Each of you will receive a letter with details of your half of the debt. You must each pay your half.

Contact HMRC if you think your share is wrong.

If you do not get Universal Credit any more

If you get the letter from HMRC after you’ve stopped receiving Universal Credit, you must repay DWP directly.

If you’re in Northern Ireland, you must repay the Department for Communities.