HMRC Tax Credit Overpayment 2024: Overview, Risks, And Solutions

The money owed for contributing more taxes than were legally required to be paid is known as the tax credit overpayment. The amount payable to and collected by HM Revenues and Customs is the HMRC Tax Credit Overpayment 2024.

HMRC Tax Credit Overpayment 2024
HMRC Tax Credit Overpayment 2024; Source- Real Business


The UK government’s HM Revenue and Customs has handled the payment of the tax credit owing to individuals. Overpayment will occur if the tax credit that the persons actually owe exceeds what they receive.

The overpayment could result from an error made by the tax credit office, inaccurate information provided to them, or a change in your circumstances that you failed to disclose to them.

The tax credit office may have made a mistake or you may have given them inaccurate information, which is the basis for the overpayment of the tax rebate. The HMRC Tax Credit Overpayment is recoupable, and HMRC has the authority to decide whether to do so. If an employee feels they have received extra funds, they can use Form WTC/AP to request a reassessment.

Necessary Steps If You Have Overpayment

  • Verify whether the  compensation really happened.
  • If you believe that the amount you received is correct, you can report this to HMRC.
  • Make sure you were paid more by mistake.
  • If they haven’t, you can request a reduction in the HMRC Tax Credit Overpayment, given you the appropriate quantity based on the information provided, given you a recommendation.
  • Make whatever corrections you have mentioned about them.

Risks Of HMRC Tax Credit Overpayment 2024

  • HMRC has the option to pursue legal action or engage in debt collection in order to recover the money.
  • Your credit score may suffer from unpaid bills, which can also make it more challenging to apply for loans.
  • Remaining unpaid tax credit debt could be an issue while pursuing other advantages.

Solution For HMRC Tax Credit Overpayment 2024

  • Call HMRC or send them an email to discuss the issue.
  • Select a payback plan.
  • If you were at fault, you should give HMRC an explanation of the fix and all the required paperwork.
  • Make adjustments to the budget to ensure you can make financial gains if the deductions are taken out of your current perks.
  • Notify them of any changes in your income, marital status, or other situations that might have an impact on the payments.

Repayment Of The Overpayment

Household Income  Reduction 
Less than or equal to £20000 10%
£ 20000 or less and you get less than maximum credit 25%
More than £ 20000 50%

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