Tax credits overpayments
1. Overpayments
You may have to repay any tax credits you’re not entitled to. Overpayments can happen if:
- you don’t report a change in your circumstance to the Tax Credit Office
- you make a mistake on your claim form
- you don’t renew your tax credits on time
The Tax Credit Office will tell you what you owe and how the money can be repaid.
If you don’t pay, HMRC can change your tax code to collect the money owed. They’ll write explaining how this works. To ask them not to do this and pay another way you must contact them within 30 days of their letter.
Tax Credit Payment Helpline
0345 302 1429
Monday to Friday, 8am to 8pm
Saturday, 8am to 4pm
Find out about call charges
Making extra payments
Call the Tax Credit Payment Helpline if you want to make extra payments to clear the debt more quickly.
2. Dispute form TC846
You can ask the Tax Credit Office to reconsider an overpayment decision if you think they made a mistake or gave you incorrect advice.
You can also do this if you're no longer getting tax credits.
To do this, send dispute form TC846 by the deadline.
Download 'Form TC846 - Dispute a tax credit overpayment decision' (PDF, 26KB)
The Tax Credit Office will continue to reclaim overpayments while they review your dispute.
Deadlines
Send your dispute form within 3 months of the date (the ‘decision date’ on Annual Review notices) on the first letter, statement or notice you received telling you that you’ve been overpaid.
You can only send it after the deadline in exceptional circumstances - eg you were in hospital for the 3 months.
If you’ve appealed against an earlier decision on your claim or you’ve requested a ‘mandatory reconsideration’, you need to send your dispute form within 3 months of getting a decision.
Where to send the form
Send dispute form TC846 to the Tax Credit Office.
Overpayments Disputes Team
Tax Credit Office
Preston
PR1 4AT
What happens next
You’ll get a letter telling you:
- if you have to repay the tax credits
- how much you have to repay
- the reasons for the decision
If you don’t agree with the decision
You can:
- send the Tax Credit Office new information
- ask them to review the information you sent
The Tax Credit Office will continue to reclaim overpayments while they review your information.
You can contact an organisation like Citizens Advice if you haven’t got any new information and you’re still unhappy.
3. Repay your tax credits
The Tax Credit Office will tell you what you owe and how you can repay it - eg by reducing your tax credits.
If you’re asked for a ‘direct payment’ you must usually repay what you owe within 30 days of the ‘notice to pay’.
Call the helpline if you’re finding it hard to repay - you may get more time. You’ll need details of your living expenses, income, investments and savings.
Tax Credit Payment Helpline
0345 302 1429
Monday to Friday, 8am to 8pm
Saturday, 8am to 4pm
Find out about call charges
Direct Debit
Call the helpline to set up a Direct Debit. You can also set it up via your HMRC online account if you already have one (eg you do your Self Assessment tax returns online).
You need your tax credit reference number and bank details. It takes up to 5 working days to set up and payments appear on your statements as ‘HMRC NDDS’.
Online and telephone banking
Use your tax credit reference number as the payment reference and the bank details below.
| Sort code | Account number | Account name |
|---|---|---|
| 08 32 10 | 12001039 | HMRC Cumbernauld |
Overseas accounts
If you’re paying from an overseas account use the details as below. You can pay in sterling or another currency.
| Account name | IBAN | BIC |
|---|---|---|
| HMRC Cumbernauld | GB74CITI08321012001039 | CITIGB2L |
If asked for the IBAN, you must also give the BIC.
HMRC’s bank address is: Citi, Citigroup Centre, Canada Square, Canary Wharf, London E14 5LB.
Your bank or building society
Use your payslip to pay at your own bank by cash or cheque made payable to ‘HM Revenue & Customs only’ followed by your tax credit reference number. Allow 3 working days for payments to reach HMRC.
Post Office
You must use your payslip. You can pay by debit card, cash or cheque made payable to 'Post Office Ltd'. Allow 3 working days for payments to reach HMRC.
Post
Include your payslip and cheque made payable to ‘HM Revenue & Customs only’ followed by your payslip reference number. Allow 3 working days for payments to reach HMRC.
HM Revenue & Customs
Bradford
BD98 1YY
Don’t fold your payslip or cheque or fasten them together. If you want a receipt, include a note asking for one. You can only send a postdated cheque if you have HMRC’s permission.
If you don’t have a payslip
If you don’t have a payslip, include:
- your contact details
- your tax credit number
- how much you’re paying
- period you’re paying for
It's your responsibility to make sure payments reach HMRC on time. Check your bank's transaction limits and processing times.