Tax-credit overpayments

HMRC may have told you that you have been paid too much tax credits and they may have asked you to pay it back. This is called a tax credit overpayment.

  • The way the debt is recovered depends upon whether you still receive tax credits.
  • If you still receive tax credits, the debt usually needs to be treated as a priority. This is because HMRC has the power to make deductions from your ongoing tax credits before you get them.
  • Sometimes you may be able to treat the debt as a non-priority, for example if you no longer receive any tax credits.

Tax-credit overpayments for more advice and information.