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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.
    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.

    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.

    Any posts I make on the All About Debt 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


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