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