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Give it back!

06 October 2009 / Robin Williamson
Issue: 4226 / Categories: Comment & Analysis , tax credits , Income Tax
ROBIN WILLIAMSON explains how to challenge tax credits overpayments


  • Overpayments are symptomatic of the system.
  • Appeals can be made against overpayments shown on awards.
  • Code of Practice 26 sets out HMRC’s recovery policy.
  • Cases for remitting overpayments.
  • Judicial review is an option.

This article is an outline guide to explain what tax credits overpayments are; why they are not just a product of claimant error or for that matter HMRC error; how they are generated; and what can sometimes be done to challenge them.

Tax credits overpayments

In the early years of tax credits the annual statistics showed nearly £2 billion as overpaid. After various legislative and policy changes the figure is now closer to £1 billion.

In the past the rhetoric of journalists and politicians would attribute this alarmingly high figure to error and incompetence...

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