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Tax Credits Overpayments - What is an overpayment ?

Information on tax credit overpayments and what to do if you think you have been overpaid.

What is an overpayment ?

Tax credit awards are calculated annually and your award for a year is only finalised after the end of that tax year. An overpayment of tax credit will be calculated if you received:

  • more than your entitlement for that year, or
  • a payment to which you were not entitled.

Your tax credit entitlement may be adjusted within a tax year to avoid an end-of-year overpayment.

A tax credit overpayment can happen if:

  • You give incorrect or incomplete information when making or renewing a claim.
  • You fail to notify a change of circumstance.
  • You don’t report significant increases in income.
  • You don’t renew your tax credits on time.
  • HM Revenue and Customs (HMRC) make an error.

Reviewed: Aug 2022

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