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Why you may have been overpaid

You could have built up an overpayment if:

• you didn't tell the Tax Credit Office about a change of circumstance that affects your payments - such as a child leaving full time education (as long as the education qualified for tax credits)
• your payments were based on wrong information about your personal situation
• you didn't renew your tax credits on time
• the Tax Credit Office made a mistake recording the information you gave them
• the Tax Credit Office didn’t act on information you gave them

If you have been overpaid, this will be shown on your award notice.

• Tax credits - rights and responsibilities

You didn’t tell the Tax Credit Office about a change of circumstance

Not telling the Tax Credit Office about a change in circumstances is one of the main reasons why people are overpaid tax credits.

When you tell the Tax Credit Office about a change in circumstances, they have to work your award out again. Your award may be re-worked for:

• the whole tax year – which runs from 6 April one year to 5 April the next
• the period from when you made the claim, to the end of the tax year
• the period from when the change happened up to the end of the year

The Tax Credit Office will then send you a new award notice telling you when your new payment will start from.

If you don't tell them about a change that affects your tax credits, for example you separate from your partner, they won't know about it until you confirm your actual circumstances when you renew your tax credits after the end of the year. At this point they check whether the money you have received matches your income and circumstances.

If you have received too much money then this means you have been overpaid. 

• Tax credits: how and when to report changes

• You haven't reported a change - what happens to your tax credits?

You gave the Tax Credit Office wrong information

Your tax credits are based on your personal circumstances. These are things like:

• whether you’re single or part of a couple
• how many children you've got
• how many hours a week you work
• whether you have a specific disability and have been getting some disability or sickness benefits

So it's important you give the Tax Credit Office the right details about your circumstances on your claim form.

• How to avoid common mistakes on your tax credits claim form

• Putting mistakes right once you've sent in your tax credits claim

You didn't renew your tax credits on time

If you’re getting tax credits, the Tax Credit Office will normally send you a renewal pack between April and June each year. You use this to tell them if your circumstances or income has changed. They can then work out whether they paid you the right money last year and whether they should carry on paying you the same tax credits during this year.

The deadline for all replies to the annual review is shown on your Annual Review form - usually 31 July. The sooner you check your details and tell the Tax Credit Office of any changes, the sooner they can make sure you get the money you’re entitled to.

If you don’t renew your tax credits, you may only receive payments for a limited period after the end of the tax year and you’ll have to repay any overpayment.

• Renew your tax credits claim - why and how

The Tax Credit Office made a mistake on your award notice

When you claim tax credits for the first time, or tell the Tax Credit Office about a change of circumstance, they will send you an award notice. It is their responsibility to put the right information on your award notice based on information you give them.

It is important that you check your award notice carefully using the checklist that comes with it. If the Tax Credit Office have made a mistake it may mean you:

• are not getting all the money you are entitled to
• could be building up an overpayment

You must tell the Tax Credit Office within one month if something is wrong, missing or incomplete, they will put it right and send you a new award notice. In this case, you may not have to pay back all of your overpayment.

If there’s anything on your award notice that you don’t understand, or you’re not sure if the Tax Credit Office have made a mistake, call the Tax Credit Helpline on 0845 300 3900 or textphone 0845 300 3909.

• Checking your tax credit award notice

The Tax Credit Office didn’t act on information you gave them

When you contact the Tax Credit Office to tell them about a change in circumstances, it’s their responsibility to record the information and send you an award notice within 30 days. If you don’t get an award notice within 30 days, you should tell them immediately. In this case, you may not have to pay back all of your overpayment.

• How to dispute a tax credits overpayment

Contact the Tax Credit Office

If you need more help you can call the Tax Credit Helpline on 0845 300 3900, or textphone 0845 300 3909 if you are deaf or have a hearing or speech impairment (open from 8.00 am to 8.00 pm every day except Christmas Day, Boxing Day and New Year's Day).

If you're calling from overseas you can also contact the Tax Credit Office on +44 289 053 8192.

More useful links

• How to avoid being overpaid on your tax credits

• Repaying overpaid tax credits

• Download the HMRC leaflet 'What happens if we have paid you too much tax credit?' (PDF, 113K) Opens new window

• Help with PDF files