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26 February 2016

Tax credit overpayments - changes to ongoing recovery

HMRC have previously announced that they are making some changes to the way they recover tax credit overpayments from ongoing awards.

That change is now taking place and HMRC tell us that, from 8 February 2016, tax credit claimants who have an overpayment will have the overpayment recovered from ongoing payments of working tax credit and child tax credit at the same time. This replaces their previous process of recovering WTC overpayments from a WTC award and CTC overpayments from a CTC award.  

HMRC estimate that about 200, 000 claimants may be affected by this change and are sending new award notices out to them detailing their revised ongoing payments. Claimants should start to receive these award notices from around 18 February 2016 onwards.