Difficulty repaying overpaid tax credits?

If you've been overpaid, the Tax Credit Office will usually ask you to pay back the extra money. But if that means you can't meet essential living expenses like rent, gas or electricity bills, call the Tax Credit Helpline to discuss your options.

On this page:

If your payments have gone down

The Tax Credit Office might have reduced your tax credits to repay an overpayment. If you're struggling to pay essential living expenses because of this, get in touch with them as soon as possible to talk about your options. You can do this by calling the Tax Credit Helpline.

Contact details for the Tax Credit Helpline

You'll be asked detailed questions about your circumstances. The Tax Credit Office may offer you a longer period in which to pay by changing the rate at which you pay back the money. If they do, it will take you longer to pay off your overpayment.

In exceptional circumstances they may write off your overpayment altogether.

Find out how the Tax Credit Office work out your reduced payments

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If you've received a Notice to Pay

If you have an overpayment from a previous award, the Tax Credit Office will have sent you a Notice to Pay. This asks you to pay the full amount within 30 days. If you're not able to do this, call the Tax Credit Payment Helpline on Tel 0845 302 1429 to talk through your options. You may be able to spread the repayment into instalments.

So that the Tax Credit Office can make a decision on your repayments you'll need to tell the helpline about:

  • spread the repayment over a longer period
  • put back the date they start to collect the money you owe them

Contact details for the Tax Credit Helpline

So that the Tax Credit Office can make a decision on your repayments you'll need to tell them about:

  • your family circumstances
  • your income now and in the future
  • your living expenses, for example rent, council tax, gas or electricity bills
  • your savings, investments and other assets
  • your other debts, for example mortgage repayments
  • how long it will take you to pay back the overpayment
  • whether you are repaying a previous overpayment or have recently repaid one

When they've made their decision, they'll tell you how much money you'll have to pay back and how long they'll give you to repay it.

In exceptional circumstances, the Tax Credit Office may be able to put recovery of the overpayment on hold until you are able to fully discuss your financial situation. For example if you or a family member are seriously ill. Or they may write off your overpayment altogether.

If you still need more time to pay, call the Tax Credit Payment Helpline on Tel 0845 302 1429 to talk through your options.

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More useful links

How to dispute an overpayment

How to avoid being paid too much or not enough tax credits

You have separated and have a joint tax credits overpayment

Download a leaflet 'What happens if we have paid you too much tax credit?' (PDF 144K)

Leaving tax credits

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