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Home > Benefits Guides > Tax Credits Overpayments > Are all overpayments of tax credits recoverable?

Tax Credits Overpayments - Are all overpayments of tax credits recoverable?

This guide explains about tax credit overpayments and what to do if you think you have been overpaid.

  1. 1. What is an overpayment ?
  2. 2. How would I know if I have been overpaid?
  3. 3. What should I do if I think that I am being overpaid?
  4. 4. Are all overpayments of tax credits recoverable?
  5. 5. Who can the overpayment be recovered from?
  1. 6. How are tax credit overpayments recovered?
  2. 7. What if I can’t afford to repay?
  3. 8. What should I do if I don't think I have been overpaid?
  4. 9. What should I do if I think the overpayment was not my fault?
  5. 10. How do I avoid a tax credit overpayment?

Are all overpayments of tax credits recoverable?

Tax credits are assessed on an annual basis and your total entitlement for a year is not finalised until the end of that tax year. This means that an element of under- and over- payment is built into the system. It is expected that all overpayments will be carried over and recovered during the next tax year.

This means that all tax credits overpayments are legally recoverable. However, HM Revenue and Customs' HM Revenue and Customs' (HMRC's) Tax Credits: What happens if I've been paid too much' guidance states that an overpayment will not be recovered if it was due to a mistake at the tax credit office and you met all of your responsibilities by reporting changes in circumstances promptly, by checking all award notices and notifying HMRC within one month of any mistakes or errors.

If both you and the Tax Credit Office made a mistake, they will decide whether to recover some or all of the overpayment.

Reviewed: August 2017


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