Tax credit overpayments
- 20th December 2023
- Posted by: admin
- Category: News
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HMRC’s guidance for taxpayers that have received overpayments of tax credits is entitled What happens if we’ve paid you too much tax credits (COP26). The guidance explains why overpayments happen and how taxpayers need to pay them back to HMRC.
The leaflet includes details of the following:
- How HMRC can recover an overpayment;
- Instructions as to how to appeal a recovery of a tax credit overpayment;
- Disputing recovery of an overpayment due to HMRC being remiss;
- Steps HMRC take to recover overpayments;
- Agreeing time to pay;
- Who is responsible for repaying joint claims; and
- Mental help & financial hardship.
The leaflet includes a number of worked examples including one where HMRC made an error and another concerning a backdated claim for the disability element of the Working Tax Credit.
The guidance also covers what both the taxpayer and the Tax Credit Office should do to help get tax credits right in the first place to avoid an overpayment or to ensure any issues are dealt with quickly.
Source: New feed