How to dispute a tax credits overpayment

If the Tax Credit Office pays you too much tax credit, they may ask you to pay it back. If they made a mistake or gave you incorrect advice, you can ask them to look at their decision again. This is called a 'dispute'.

On this page:

Disputing an overpayment

To dispute your overpayment you can fill in and return form TC846. You can get the form by following the link below.

Download form TC846 'Tax credits overpayment' (PDF 178K)

Or you can write to:

Tax Credit Office
Preston
PR1 4AT

In your letter you'll need to:

  • give the Tax Credit Office all your details
  • tell them why you think you shouldn't have to pay back your overpayment

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What happens next?

Once the Tax Credit Office has received your form or letter, they'll write to tell you:

  • that they'll stop recovering the overpayment until they've finished looking at the details of your dispute
  • what'll happen next

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How the Tax Credit Office makes their decision

The Tax Credit Office looks at whether you have met certain responsibilities, and whether they have too. For example, they check that:

  • they gave you the correct advice based on the information you gave them
  • they accurately recorded and used the information you gave them when you made a claim (or renewed your claim) to work out your tax credits and pay you the correct amount
  • you told them about changes in your circumstances throughout the year so they have accurate and up to date information
  • you told them about any mistakes on your award notice within one month of receiving it

The Tax Credit Office may write off some or all of your overpayment if you met all your responsibilities - but they didn’t meet theirs. For example, if they did not act on a change of circumstances you told them about within one month, or gave you incorrect advice.

If you told the Tax Credit Office you couldn't check your award notice or bank payments because of exceptional circumstances, you might not have to pay back an overpayment. For example, if you or a family member were seriously ill in hospital.

Find out about tax credits rights and responsibilities

Checking your tax credits award notice

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If you disagree with the decision

When the Tax Credit Office has made their decision they'll write to tell you if:

  • they are going to write off some or all of the overpayment
  • you have to pay it back

They'll also tell you the reasons for their decision.

If the Tax Credit Office decides you have to pay the overpayment back, they'll start collecting it. If you're unhappy with their decision and you've got some new information, please write and tell them as soon as possible.

The Tax Credit Office may also review your case if you feel that they have not taken into account previous information you gave them. However, they won't stop collecting back the overpayment whilst looking at this information.

If you haven't got new information but you are still unhappy with their decision, you can talk to an organisation like Citizens Advice or Community Legal Advice. They'll help you consider your options.

Find your nearest Citizens Advice Bureau on their website (Opens new window)

Contact details for Community Legal Advice on GOV.UK (Opens new window)

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More useful links

Repaying overpaid tax credits

Where to start if things go wrong with tax credits

Download a leaflet 'What happens if we have paid you too much tax credit?' (PDF 80K)

Contact the Tax Credit Helpline

Leaving tax credits

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