How to dispute a tax credits overpayment

If the Tax Credit Office pays you too much tax credit, they may ask you to pay it back. If they made a mistake or gave you incorrect advice, you can ask them to look at their decision again. This is called a 'dispute'.

Disputing an overpayment

To dispute your overpayment you can fill in and return form TC846. Don't forget to put your address in the space at the top of the form.

Or you can write to:

Tax Credit Office
Preston
PR1 4AT

In your letter you’ll need to:

give the Tax Credit Office all your details
tell them why you think you shouldn’t have to pay back your overpayment

What happens next?

Once the Tax Credit Office have received your form or letter, they'll write to tell you:

that they'll stop recovering the overpayment until they've finished looking at the details of your dispute
what will happen next

How the Tax Credit Office make their decision

The Tax Credit Office looks at whether you have met certain responsibilities, and whether they have too. For example, they check that:

they gave you the correct advice based on the information you gave them
they accurately recorded and used the information you gave them when you made a claim (or renewed your claim) to work out your tax credits and pay you the correct amount
you told them about changes in your circumstances throughout the year so they have accurate and up to date information
you told them about any mistakes on your award notice within one month of receiving it

The Tax Credit Office may write off some or all of your overpayment if you met all your responsibilities - but they didn’t meet theirs. For example, if they did not act on a change of circumstances you told them about within one month, or gave you incorrect advice.

If you told the Tax Credit Office you couldn't check your award notice or bank payments because of exceptional circumstances, you might not have to pay back an overpayment. For example, if you or a family member were seriously ill in hospital.

If you disagree with the decision

When the Tax Credit Office have made their decision they'll write to tell you if:

they are going to write off some or all of the overpayment
you have to pay it back

The Tax Credit Office also tell you the reasons for their decision.

If you're not happy with their decision and you've got some new information, please write and tell them as soon as possible. They'll stop recovering the overpayment again and look at the new information.

They may also review a case if you feel that they have not taken into account previous information you gave them. However, they will start collecting back the overpayment whilst looking at this information.

If you haven't got new information but you are still unhappy with the decision, you can talk to an organisation like Citizens Advice or Community Legal Advice. They'll help you consider your options.