Tax credits overpayments
If you get Universal Credit
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.
There are different reasons why you might be overpaid tax credits. You can call HMRC if you want to know how they calculated your overpayment.
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.
There鈥檚 a different . You will repay the Department for Communities (DfC).
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
DWP Debt Management contact centre
Telephone: 0800 916 0647
Textphone: 0800 916 0651
(if you cannot hear or speak on the phone): 18001 then 0800 916 0647
for British Sign Language (BSL) users -
Calling from abroad: +44 (0)161 904 1233
Monday to Friday, 8am to 7.30pm
Find out about call charges
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.
There鈥檚 a different . You must repay the Department for Communities (DfC).