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HMRC Tax Credit overpayment demand

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  • HMRC Tax Credit overpayment demand

    Good morning everyone!

    I have just come back from a week away to a letter dated 17th May 2018 from HMRC advising me I have been overpaid tax credits and need to repay it by 26th June 2018:

    Award period ended 05/04/2016: £60.96
    Award period ended 05/04/2017: £1039.35
    Amount owed: £1100.31

    I have tried calling the number on the letter but the recorded message advises me they are very busy and there are no advisers available to help, at which point the call disconnects. What is the best course of action?


  • #2
    Did you receive a 'Notice to Pay'?

    If you did then you are normally given 42 days to pay but if you cannot afford to pay the lump sum within 42 days then it should also tell you how to contact HMRC to arrange repayment at a rate you can afford over a longer period of time. You can also ask HMRC to suspend/remit the recovery of the over payment ff you are on long term benefits, cannot afford to make any payment and your situation is unlikely to change.

    If you think their decision is wrong and you haven't been overpaid tax credits then you can appeal the decision. The appeal process has two steps. The first step is to send what is known as a mandatory reconsideration request to HMRC, This will mean that HMRC will review your file and reconsider their decision. You can do this online here:

    It is probably better to apply online but if you prefer to apply by post then the relevant form can be accessed online here:

    You can also just write a letter but if you do ensure that your request includes:
    1. Your name (and, if you have a partner, their name)
    2. Your (and your partner's) date of birth
    3. Your(and your partner's) national insurance number
    4. The date of the decision you wish to appeal
    5. Briefly explain why you think they have got wrong.

    If you send by post ensure that you keep a copy of your letter or the completed form, and send it to HMRC by signed for post (recorded delivery/special delivery). If you cannot afford that them obtain a certificate of posting.
    Legal Disclaimer
    I am a solicitor Advocate who specialises in consumer credit and my firm is Joanna Connolly Solicitors. My leading case of Carey v HSBC set the legal precedence for creditors compliance with s.77 & s.78 Consumer Credit Act 1974 statutory requests & enforcement of debts in court. Any posts I make on the AAD Consumer Forum are for information and discussion purposes only and shouldn't be seen as legal advice. Any advice I provide on the forum is without liability. If you are unsure please seek formal legal guidance or contact your local citizens advice bureau at

    If you need to contact me you can send me a message by clicking my username or by emailing me at or by telephoning 0330 053 9340.


    • #3
      Sorry I never replied thanking you for your help which was rude of me so apologies and thanks Joanna Connolly


      • #4
        Joanna Connolly

        I have received a letter regarding the appeal I submitted advising that the decision notice that I had been overpaid was dated 27th June 2017 and that I had 3 months from that date to dispute the recovery of the overpayment. Neither I nor my wife had received anything until the Notice to Pay dated 17th May 2018. I called the number on the letter but all they could say was that according to their system, the letter was sent. I have also received a notification of award of Tax Credits for the period 6th April 2018 - 5th April 2019 advising I would not be receiving any payments and that I now owed a total of £1616.67. I have had nothing advising of an overpayment for year ended 5th April 2018 but it seems they're saying another £500 has been added. This is just ridiculous. Is there anything I can do?

        Thanks very much.
        Last edited by GlennBaker; 17th July 2018, 07:20.


        • #5
          Well I had to do something so spent most of yesterday trying to get through on the payment helpline and arranged a repayment plan with HMRC.

          Is this forum just not as active as it once was?


          • #6
            Originally posted by GlennBaker View Post
            Well I had to do something so spent most of yesterday trying to get through on the payment helpline and arranged a repayment plan with HMRC.

            Is this forum just not as active as it once was?
            I personally don't have recent experience in tax credits.

            But as you can surely see there have been subtle yet significant changes through IT and globalisation (jobs being move to other countries, outsourcing, so called cloud memory and applications). Keeping up with this challenging for large companies let alone we consumers.

            It isn't that the forum isn't as active as it once was its because of the rapidity of change in Consumer services.
            Global Banking and hence Debts and Global DCA's serviced by Global Lawyers. Its tough.