If HM Revenue & Customs (HMRC) have contacted you about a tax credit overpayment and you’re struggling to deal with your finances as a result, we can help.
When you apply for tax credits from HMRC, you provide details of your household income. HMRC then work out your tax credit payments based on the amount they expect you to earn during the year.
At the end of the tax year, HMRC look at the income you actually received during the year. If this was more than they expected, you may have been paid too much in tax credits. You’ll need to repay this, as like other income tax arrears, the consequences of not paying can be very serious. If you need help with your arrears we'd recommend getting expert debt advice.
If your income goes up or down, it’s important to let HMRC know straight away so they can adjust your tax credit payment. This will help to prevent an overpayment at the start of the next tax year when your award is reassessed. You can notify HMRC of any changes on 0345 300 3900.