You are now leaving the Turn2us site. Turn2us is not responsible for content on third party sites.

We're campaigning to keep the £20 increase to Universal Credit – Write to Your MP
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


Anything wrong with this page?

Tell us the problem

Please enter your name
Please enter a valid email address
Please enter what you were doing
Please enter what you'd like to report
Please enter the security code shown
Close

Thank you

If you would like to tell us more please visit our contact page

Close
Add to favourites Print this guide
European Union (EU) Settled Status Form

European Union (EU) Settled Status

Waiting to hear? Missed the deadline? Read our guide to find out what you need to do next.

Find out about European Union (EU) Settled Status

Check benefit entitlement

Find out what means-tested benefits you might be entitled to, including tax credits.

Use the Benefits Calculator

Grants Search

Search our database of grant-giving organisations

Search for grants

Find a Local Adviser

Search for your nearest sources of information and advice

Find an Local Adviser