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You may have been overpaid tax credits if: 

• there was a change in your circumstances - even if you reported the change on time

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

• you did not renew your tax credits on time 

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 get Universal Credit your tax credit overpayment will be repaid automatically. Your future payments will be reduced until you’ve paid back the money you owe.

If you have not made a claim for Universal Credit, you’ll 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 ‘notice to pay’ to tell you what you owe and how to repay – you should pay this within 30 days.

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

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’ll need to give:

• your 16-character payment reference number (it’s made up of numbers and letters and you’ll 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’ll need your 16-character payment reference number. You’ll find this on your notice to pay letter. It’s made up of numbers and letters.

Make an online or telephone bank transfer

You can make a bank transfer using Faster Payments, CHAPS or Bacs:

• from your online bank account
• by phoning your bank

You’ll need your 16-character payment reference when you pay. This is made up of numbers and letters, for example QQ123456311204NA. You can find this on your notice to pay letter.

If you pay by CHAPS or Faster Payments, your payment will be received on the same or next working day.

If you pay by Bacs, allow 3 working days for the payment to reach HMRC.

Check your bank’s processing times and maximum transaction limits before you pay to make sure your payment reaches HMRC on time.

Account details to use if your account is in the UK

Use the following details to make a payment if your account is in the UK:

• sort code - 08 32 10
• account number - 12001039
• account name - HMRC Cumbernauld

Account details to use if your account is overseas

Use the following details to make a payment if your account is overseas:

• account number (IBAN) - GB62 BARC 2011 4770 2976 90
• Business Identifier Code (BIC) - BARCGB22
• account name - HMRC Cumbernauld

You must make overseas payments in pound sterling. Your bank may charge you if you use any other currency.

HMRC’s bank address is:

At your bank or building society

You can only pay at your branch by cash or cheque if you have the paying-in slip HMRC sent you.

Make your cheque payable to ‘HM Revenue and Customs only’.

Write your 16-character payment reference number on the back of the cheque. This is made up of numbers and letters, for example QQ123456311204NA. You can find this on your notice to pay letter.

HMRC will accept your payment on the date you make it and not the date it reaches HMRC’s account (as long as you pay from Monday to Friday).

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 ‘HM Revenue and Customs only’. Write your 16-character payment reference number on the back of the cheque. This is made up of numbers and letters, for example QQ123456311204NA. You can find this on your notice to pay letter.

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-character payment reference number
• how much you’re paying
• the period you’re 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’re 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 get Universal Credit or not.

If you get Universal Credit

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

If you do not get Universal Credit

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

If you’ve received a ‘TC1131’ letter, this means your debt has passed to DWP. Call the DWP Debt Management contact centre to discuss your options. Call if you’re in Northern Ireland.

After you start getting Universal Credit you’ll get a letter from HM Revenue and Customs (HMRC) telling you how much you owe. The letter is called a ‘TC1131 (UC)’.

The letter may come a few months after you’ve moved to Universal Credit.

If you are already paying a ‘notice to pay’, 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 ‘Time to Pay’ 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’ve 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’ve stopped receiving Universal Credit, you’ll 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 ‘notice to pay’ 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 ‘enforcement action’ 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’ll get a letter called a ‘TC1131 (non-UC)’ 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 (‘Direct Earnings Attachment’)
• 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.