What is a tax credit overpayment?
A tax credit overpayment happens when you have received more tax credits than you should have in a tax year. (A tax year runs from April 6th in one year to April 5th of the next year). After the end of every tax year, HMRC check to see if they have paid you the right amount for the year just ended. If they have paid you more than they think you should have had, you will have a tax credit overpayment.
You may feel very panicked by the whole situation, but try not to worry. By following the steps in this guide, we can help you through it. Don’t forget that you can get help from an expert. Have a look at How to find an adviser.
Who is your letter from?
Tax Credits are dealt with by HM Revenue and Customs (HMRC).
Most of your letters will probably come from the Tax Credit Office (sometimes called TCO). They are the part of HMRC that decide if you will get any tax credits. They also pay your tax credits. If you have any problems, the Tax Credit Office will be the people you write to and who make decisions about overpayments.
If you phone the tax credit helpline, you will be speaking to a part of HMRC called the ‘contact centre’ who answer calls about tax credits.
Sometimes you might get letters from other parts of HMRC about your tax credits. If the Tax Credit Office think you have to pay back some of your tax credits, they might ask another part of HMRC to write to you. This is usually the ‘Debt Management and Banking’ part of HMRC. Their job is to collect money that is owed to HMRC.
