If HMRC comes to the conclusion that too much tax credit has been paid to you – known as tax credit overpayment – they can ask you to pay back the balance. This can occur if:
- Your situation changes, even if the changes are reported by you in plenty or time
- There is a mistake made, either by you or by the Tax Credit Office
- You are late to renew your tax credits
You will be contacted by the Tax Credit Office if they believe you owe the money back. They typically write to you to inform you of the balance and provide information on how to go about making repayments. If you believe that this is a mistake or that the amount they claim you have been overpaid is incorrect, you can make an appeal.