How to make tax credit repayments
This guide explains the available payment options for repaying tax credit overpayments to HM Revenue & Customs (HMRC) and gives a summary of when you need to make repayments.
If you are still receiving tax credits you can pay back what you owe HMRC by receiving reduced payments from them over the next tax period. If you are no longer receiving tax credits, but have outstanding tax credit payments to make to HMRC, you can use one of the methods described in this guide to make a payment.
HMRC recommends that you make your tax credit repayments electronically. Paying electronically:
- is safe and secure
- gives you better control over your money
- provides certainty about when your payment will reach HMRC
- avoids postal delays
- may lower your bank charges
- lets you pay at a time convenient to you if you use Internet or telephone banking
On this page:
- Update: changes to HMRC bank accounts from 6 April 2009
- When you need to pay tax credit repayments
- Paying by Direct Debit
- Paying by Internet or telephone banking
- Paying by Bank Giro
- Paying at the Post Office
- Paying by post
- Paying from an overseas bank account
- Correspondence or receipt requests
- What to do if you don't have a payslip
- Information about the Faster Payment service
- More useful links
Update: changes to HMRC bank accounts from 6 April 2009
HMRC bank account details changed from 6 April 2009. If you make payments by Internet or telephone banking or from an overseas bank account the new account details are included below. Please note these for future reference.
HMRC is now using two banks - Citi for Internet and telephone banking payments and Royal Bank of Scotland Group for Bank Giro credits.
If you experience problems using the new account details
HMRC is aware that some customers are experiencing problems making payments from their banks to the new HMRC bank accounts. We are working to resolve this with the banks involved as quickly as possible. If this affects you, you can continue to use the old HMRC account details to make your payments. We apologise for any inconvenience this may have caused you.
When you need to pay tax credit repayments
You must pay back the full amount of the overpayment within 30 days of receiving a Notice to Pay (which will include a payslip) from HMRC.
If you cannot repay within 30 days please call the Payment Helpline on Tel 0845 302 1429 and HMRC can make arrangements for you to pay it back in instalments over 12 months. You must contact them as soon as possible to arrange this.
It may be possible to repay the amount over a longer term if repaying within 12 months would mean that you are unable to meet essential living costs. HMRC will need to ask for information about your financial circumstances before they can make a decision.
Paying tax credit repayments by Direct Debit
You can now repay your tax credit overpayment by Direct Debit. HMRC recommends that you pay by Direct Debit because:
- it's safe and secure and available 24 hours a day
- it puts you in control, making it less likely you'll miss a payment deadline
- Direct Debit provides certainty about when your payment will reach HMRC
- HMRC checks your payment reference to make sure it's correct so payment reaches your account without any delay
- unlike any other payment method you are protected by the Direct Debit Guarantee
- it avoids the need to write cheques - and saves postage if you normally pay by post
Find out about the Direct Debit Guarantee
To arrange to this you will need to contact the HMRC Payment Helpline on Tel 0845 302 1429. Before calling please ensure you have the following information to hand:
- Your tax credit reference number which is shown on the payslip HMRC sent you and is located in the reference box. The reference number is made up of 16 characters where the first eight characters are your National Insurance number, for example AB123456311204NC.
- Your bank or building society details - sort code, account number and account name.
Setting up payments - how much time to allow
When setting up your first Direct Debit payment you need to allow at least five bank working days before the date you wish to make your payment. For subsequent payments you need to allow at least three bank working days.
Bank working days are Monday to Friday excluding bank holidays. If you haven't allowed enough time then you'll have to pay by another electronic payment method described elsewhere in this guide.
Your bank statement
Your Direct Debit payment will appear on your bank statement with the description 'HMRC NDDS'.
If you are having problems paying
If you are having difficulty making your Direct Debit payments, perhaps because of a change in your circumstances, please call HMRC on Tel 0845 302 1429 to discuss your options.
Paying tax credit repayments by Internet or telephone banking
You can use your bank or building society services to pay back overpaid tax credits by Internet or telephone banking.
If you don't have access to Internet or telephone banking but wish to make a transfer by other means, your bank may accept telephone, fax or written instructions.
To make a payment you will need the account details given below and your tax credit reference (found on the payslip you receive from HMRC).
It normally takes three bank working days for payment to reach HMRC. Bank working days are Monday to Friday excluding bank holidays. Some banks and building societies can take longer. You should check with your bank or building society to see how long they take to transfer payment and what their cut-off time is for initiating payment. If they take longer then you will need to initiate your payment earlier.
Providing HMRC bank account details
You will need to provide your bank or building society with HMRC's bank account details. If your payment is made with the wrong sort code or account number there may be a delay before your account is credited or your payment may not be received at all.
| Accounts Office | Sort code | Account number | Account name |
|---|---|---|---|
| Cumbernauld | 08 32 10 | 12001039 | HMRC Cumbernauld |
Bank account changes from 6 April 2009
The account details above were updated on 6 April 2009. Please note these for future reference. You should also arrange to update any templates or transactions that you have stored for online banking purposes.
If you experience problems using the new account details
HMRC is aware that some customers are experiencing problems making payments from their banks to the new HMRC bank accounts. We are working to resolve this with the banks involved as quickly as possible. If this affects you, you can continue to use the old HMRC account details to make your payments. We apologise for any inconvenience this may have caused you.
Your tax credit reference number
When making your payment you will need your reference number which is shown on the payslip HMRC sent you and is located in the reference box. The reference number is made up of 16 characters for example AB123456311204NC where the first eight characters are your National Insurance number.
It is important that you show the reference with no gaps between the characters otherwise it could lead to delays in updating your account.
Check your Tax Credit reference using HMRC's reference checker
Paying tax credit repayments by Bank Giro
If your bank or building society offers the Bank Giro service you can make a payment at your own bank branch by cheque or cash. HMRC treats any payment made by Bank Giro as electronic, giving you extra time to pay.
If paying this way please:
- Take your payslip to your own bank branch (other banks may refuse to accept it or may charge you for this service).
- Make cheques payable to 'HM Revenue & Customs only' and write your tax credit reference after 'HM Revenue & Customs only'. Your reference can be found on the payslip HMRC sent you and is located in the reference box.
HMRC is in the process of changing its bank account details and will be amending payslips to reflect these. However, arrangements are in place to continue to receive payments made using the old bank account details and payslips for the time being.
To allow for possible delays in bank processing (for which HMRC is not responsible) please allow at least three bank working days for your payment to reach them. Bank working days are Monday to Friday excluding bank holidays.
Paying tax credit repayments at the Post Office
You can make a payment at the Post Office by cheque, cash or debit card without charge. HMRC treats any payment made at the Post Office as electronic, giving you extra time to pay.
If paying this way please:
- take your payslip with you (otherwise you'll be charged for using this service)
- make cheques payable to 'Post Office Ltd'
HMRC is in the process of changing its bank account details and will be amending payslips to reflect these. However, arrangements are in place to continue to receive payments made using the old bank account details and payslips for the time being.
To allow for possible delays in bank processing (for which HMRC is not responsible) please allow at least three bank working days for your payment to reach them. Bank working days are Monday to Friday excluding bank holidays.
Paying tax credit repayments by post
HMRC highly recommends that you make your payments electronically using one of the methods described elsewhere in this guide. Electronic payments are generally more efficient and secure, provided you use an accurate reference number.
However if paying by post please:
- detach the payslip and send it with your cheque to HMRC's Accounts Office using the pre-addressed envelope sent to you or the address below
- do not fold the payslip or cheque and do not fasten them with paper clips or staples or in any other manner
- make your cheque payable to 'HM Revenue & Customs only' followed by your payslip reference, which can be found on the payslip HMRC sent you and is located in the reference box
To allow for possible postal delays (for which HMRC is not responsible) please allow at least three working days for your payment to reach them.
Where to send your payment
If you do not have a pre-addressed envelope, the address for posting a cheque is:
HM Revenue & Customs
Bradford
BD98 1YY
Postdated cheques
HMRC will only accept a postdated cheque if you have made a prior arrangement with the Payment Helpline to spread your payment by sending postdated cheques. To arrange to spread your payment please telephone the Payment Helpline on Tel 0845 302 1429.
Because of the highly automated operations used for processing postal payments HMRC can only identify a postdated cheque if there is a letter with it.
If you don't send a covering letter HMRC won't recognise that the cheque is postdated and will present it straight away.
Paying tax credit repayment from an overseas bank account
You can pay your tax credit repayment electronically from a bank account outside the UK. You should check with the bank how long they take to make a payment.
Providing HMRC bank account details
You'll need to give your bank or building society HMRC's bank account details. You should check with your bank or building society to see how long it takes to transfer a payment.
The account details in the tables below were updated on 6 April 2009. Please note these for future reference. You should also arrange to update any templates or transactions that you have stored for online banking purposes. HMRC has arrangements in place to continue to receive any payments using the old bank account details for the time being.
Payments to HMRC Accounts Office Cumbernauld from abroad
The account name you should use is 'HMRC Cumbernauld'.
| Currency | International Bank Account Number (IBAN) | SWIFT Bank Identifier Code (BIC) |
|---|---|---|
| Sterling and foreign currencies (except euro) | GB74CITI08321012001039 | CITIGB2L |
Payments to HMRC in euro from abroad
All payments from abroad made in euro are processed by HMRC's Accounts Office in Shipley. The account name you should use is 'HMRC Shipley'.
| Currency | International Bank Account Number (IBAN) | SWIFT Bank Identifier Code (BIC) |
|---|---|---|
| Euro | GB78CITI18500812000814 | CITIGB2L |
Note: Where and IBAN is shown you must give this number as well as the SWIFT BIC.
If your payment is made using the wrong bank account details there may be a delay before your account is credited or your payment may not be received at all.
Your tax credit reference number
When making your payment you will need your reference number, which is shown on the payslip HMRC sent you and is located in the reference box. This is made up of 16 characters, for example AB123456311204NC, where the first eight characters are your National Insurance number.It is important that you show the reference with no gaps between the characters, otherwise it could lead to delays in updating your account.
Check your Tax Credit reference using HMRC's reference checker
Tax credit repayments correspondence or receipt requests
In order to minimise costs to all taxpayers HMRC does not automatically issue receipts for payments.
If you have made your payment electronically using one of the methods described elsewhere in this guide you can confirm from your own bank or building society statement that payment has cleared your account.
However, if you are paying HMRC by post and you need to ask for a receipt include a separate letter with your payment. HMRC cannot identify any instructions written on payslips as they are processed automatically.
If you wish to tell HMRC about a change (for example a new address) you will need to include a separate letter with your payment if paying by post, or write to them separately if you have made your payment electronically.
HMRC correspondence address
HM Revenue & Customs
Banking Office Shipley
Victoria Street
Shipley
Bradford
West Yorkshire
BD98 1YY
What to do if you don't have a payslip
If you pay your tax credit overpayment electronically you will not need a payslip. HMRC recommends that you make your tax credit overpayment payments electronically using one of the methods described elsewhere in this guide. Electronic payments are generally more efficient and secure, provided you give HMRC an accurate reference number.
However, if you are paying by post and you don't have a payslip, these details should accompany your payment:
- your name
- your address
- your telephone number
- your tax credit reference number
- the period of the claim that you are repairing
- the amount of tax credit you are paying
You should then send your payment to the contact details described in the Paying tax credit repayments by post section of this guide.
Information about the Faster Payment service
HMRC is currently unable to receive or make payments using the Faster Payment service, which is offered by some banks.
For a bank's customer to make a Faster Payment, both banks involved in the transaction need to be members of the Faster Payment scheme. The Bank of England, which is currently HMRC's banking supplier, made a decision some time ago to withdraw from the provision of retail banking services to its customers (one of which is HMRC) and has not joined the Faster Payments Scheme.
HMRC is in the process of moving its business to a new banking supplier. Following this migration the opportunity for using the Faster Payments service will be reviewed.
More useful links
Find out more about tax credit overpayments
Get information on what to do if you have problems with your tax credit
Find out what you can do if you have a problem making a payment
