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You might be overpaid tax credits if:聽

• there鈥檚 a change in your circumstances - even if you report the change on time

• you or HM Revenue and Customs (HMRC) make a mistake

• you do not renew your tax credits on time聽

HMRC will write to tell you what you owe and how to repay the money. Call HMRC if you:

• think they made a mistake

• want to know how they calculated your overpayment

If you still get tax credits or are now getting Universal Credit, the money you owe will usually be taken from your future payments.

If you no longer get tax credits and have not made a claim for Universal Credit, you鈥檒l have to pay HMRC directly. The money may be recovered from you in another way if you do not repay HMRC in time.

HM Revenue and Customs (HMRC) will send you a letter called a 鈥榥otice to pay鈥� to tell you what you owe and how to repay.

How you repay depends on if you:

• still get tax credits
• have moved to Universal Credit
• do not get tax credits or Universal Credit

If you still get tax credits

HMRC will automatically reduce your future tax credit payments until you鈥檝e paid back the money you owe.

The amount they鈥檒l reduce your tax credit payments by usually depends on how much you currently get and your household income.

Household income	Reduction
拢20,000 or less and you get maximum tax credits	10%
拢20,000 or less and you get less than the maximum tax credits	25%
More than 拢20,000	50%

If you鈥檝e moved to Universal Credit

Your future payments will be reduced until you鈥檝e paid back the money you owe.

Find out more about what happens if you鈥檝e moved to Universal Credit.

If you do not get tax credits or Universal Credit

HMRC will send you a 鈥榥otice to pay鈥� which you should pay within 30 days.

It鈥檚 your responsibility to make sure payments reach HMRC on time. Check your bank鈥檚 transaction limits and processing times.

There are several ways to repay.

Make payments by phone

You can call the automated phone line to make a payment.

You can make a full or part payment. If you make a part payment, you can call back another time to pay more.

To make a payment, call 0345 302 1429 and press option 2, then option 1.

When you call, you鈥檒l need to give:

• your 16-digit payment reference number (it鈥檚 made up of numbers and letters and you鈥檒l find it on your notice to pay letter)
• how much you want to pay
• your bank card details

Direct Debit

You can call the helpline to set up a Direct Debit.

You鈥檒l need your 16-digit payment reference number. You鈥檒l find this on your notice to pay letter. It鈥檚 made up of numbers and letters.

Online and telephone banking (Faster Payments)

Pay to HMRC鈥檚 account and use your 16-digit payment reference number as the payment reference. You鈥檒l find this on your notice to pay letter. It鈥檚 made up of numbers and letters.

• Sort code - 08 32 10
• Account number - 12001039
• Account name - HMRC Cumbernauld

Payments made by Faster Payments will usually reach HMRC on the same or next day, including weekends and bank holidays.

If you鈥檙e paying from an overseas account, you can pay HMRC in sterling or another currency.

• Account number (IBAN) - GB62BARC20114770297690
• Business Identifier Code (BIC) - BARCGB22
• Account name - HMRC Cumbernauld

HMRC鈥檚 bank address is:

At your bank or building society

Pay at your branch by cash or cheque.

Make your cheque payable to 鈥楬M Revenue and Customs only鈥�. Write your 16-digit payment reference number on the back of the cheque. You鈥檒l find this on your notice to pay letter. It鈥檚 made up of numbers and letters.

If you do not give the correct payment reference number, your payment may be delayed.

HMRC will accept your payment on the date you make it and not the date it reaches HMRC鈥檚 account.

By cheque through the post

You can send a cheque by post to HM Revenue and Customs (HMRC). Allow 3 working days for your payment to reach HMRC.

Make your cheque payable to 鈥楬M Revenue and Customs only鈥�. Write your 16-digit payment reference number on the back of the cheque. You鈥檒l find this on your notice to pay letter. It鈥檚 made up of numbers and letters.

If you do not give the correct payment reference number or fill in your cheque properly, your payment may be delayed.

Do not fold your cheque.

Include a note with:

• your name, address and phone number
• your 16-digit payment reference number
• how much you鈥檙e paying
• the period you鈥檙e paying for

You can ask for a receipt if you want one.

Get help and support

Call the helpline if you:

• think HMRC made a mistake
• already have a repayment plan but you get another letter - you can adjust your existing plan or set up a new one

You can ask to repay what you owe over a longer period of time if you鈥檙e having financial difficulty. This will mean you pay less each week or month.

You may be asked about:

• any savings and income you have - including benefits and pensions
• your living expenses - including rent, mortgage or childcare payments and household costs
• any other repayments you have to make - including loans, credit cards and utility bill repayments

How you ask for your repayments to be reconsidered depends on whether you still get tax credits, Universal Credit or neither.

If you still get tax credits

If HMRC has reduced your tax credits to pay back an overpayment, you can ask them to reconsider:

• by using their - you鈥檒l need to sign in or create sign in details
• by phone

If HMRC give you more time to pay back what you owe, this will mean they take less money from your tax credits each week or month.

You will usually receive a decision within 14 working days.

If you have moved to Universal Credit

Contact the Department for Work and Pensions (DWP) Debt Management centre if you cannot afford your repayments.

If you do not get tax credits or Universal Credit

Call the tax credits payments helpline to ask HMRC to reconsider.

If you鈥檝e received a 鈥楾C1131鈥� letter, this means your debt has passed to DWP. Call the DWP Debt Management contact centre to discuss your options. Call if you鈥檙e in Northern Ireland.

After you start getting Universal Credit you鈥檒l get a letter from HM Revenue and Customs (HMRC) telling you how much you owe. The letter is called a 鈥楾C1131 (UC)鈥�.

The letter may come a few months after you鈥檝e moved to Universal Credit.

If you are already paying a 鈥榥otice to pay鈥�, keep making payments until you get the letter.

After you get the letter, the Department for Work and Pensions (DWP) will reduce your Universal Credit payments until you pay back the money you owe. You do not have to do anything to set this up.

If you are repaying tax credits overpayments from different years, you may get more than one letter - you must repay each of these debts.

If you have questions about your Universal Credit payments

Contact DWP Debt Management if you want to check:

• how much Universal Credit you will get
• when your repayments will end

If you cannot afford your repayments

Check what to do if you cannot afford your repayments.

If you have an existing payment plan

If you have a repayment plan for your tax credits debt (also known as a 鈥楾ime to Pay鈥� arrangement), it will end after you get the letter from HMRC. This applies whether the plan is with HMRC or an independent debt collector.

You must cancel any standing orders you鈥檝e set up to repay the debt. HMRC will cancel any Direct Debits.

If you claimed tax credits as a couple

The debt will be split in half between you. Each of you will receive a letter with details of your half of the debt. You must each pay your half.

Contact HMRC if you:

• think your share is wrong
• have separated from your partner - this may change the amount you have to repay

If you do not get Universal Credit any more

If you get the letter from HMRC after you鈥檝e stopped receiving Universal Credit, you鈥檒l be contacted by DWP Debt Management and told to use their repayment service. You can pay back the overpayment in full or set up regular monthly payments.

If you get a 鈥榥otice to pay鈥� you must repay HM Revenue and Customs (HMRC) within 30 days. If you asked for more time to pay you should repay within the agreed time.

HMRC will take 鈥�enforcement action鈥� if you do not pay all the money you owe in the agreed time. For example, they might ask a debt collection agency to collect any remaining money.

Your debt may be passed to the Department for Work and Pensions (DWP) if HMRC cannot get the money you owe. You鈥檒l get a letter called a 鈥楾C1131 (non-UC)鈥� when this happens.

You do not need to do anything - DWP or DfC will arrange the most suitable method of recovery with you. This might be by:

• reducing your other benefits
• agreeing a repayment plan with you
• asking your employer to take money from your earnings (鈥楧irect Earnings Attachment鈥�)
• asking a debt collection agency to collect the money

If you start getting Universal Credit

If you start getting Universal Credit before all your debt has been recovered, DWP will usually start to take repayments from your Universal Credit to collect the remaining money.