Tax credits overpayments

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How to repay your tax credits

HM Revenue and Customs (HMRC) will send you a letter called a ‘notice to pay’ to tell you what you owe and how to repay.

How you repay depends on if you:

If you still get tax credits

HMRC will automatically reduce your future tax credit payments until you’ve paid back the money you owe.

The amount they’ll reduce your tax credit payments by usually depends on how much you currently get and your household income.

Household income Reduction
£20,000 or less and you get maximum tax credits 10%
£20,000 or less and you get less than the maximum tax credits 25%
More than £20,000 50%

If you only get the family element of Child Tax Credit, your payments will be reduced by 100% whatever your income is.

If you’ve moved to Universal Credit

Your future payments will be reduced until you’ve paid back the money you owe.

Find out more about what happens if you’ve moved to Universal Credit.

If you do not get tax credits or Universal Credit

HMRC will send you a ‘notice to pay’ which you should pay within 30 days.

It’s your responsibility to make sure payments reach HMRC on time. Check your bank’s transaction limits and processing times.

If you do not pay in time, the money you owe will be recovered from you in another way.

There are several ways to repay.

Make payments by phone

You can call the automated phone line to make a payment.

You can make a full or part payment. If you make a part payment, you can call back another time to pay more.

To make a payment, call 0345 302 1429 and press option 2, then option 1.

When you call, you’ll need to give:

  • your 16-digit payment reference number (it’s made up of numbers and letters and you’ll find it on your notice to pay letter)
  • how much you want to pay
  • your bank card details

Direct Debit

You can call the helpline to set up a Direct Debit.

You’ll need your 16-digit payment reference number. You’ll find this on your notice to pay letter. It’s made up of numbers and letters.

It takes up to 5 working days to set up. Payments appear on your statements as ‘HMRC NDDS’.

Online and telephone banking (Faster Payments)

Pay to HMRC’s account and use your 16-digit payment reference number as the payment reference. You’ll find this on your notice to pay letter. It’s made up of numbers and letters.

  • Sort code - 08 32 10
  • Account number - 12001039
  • Account name - HMRC Cumbernauld

Payments made by Faster Payments will usually reach HMRC on the same or next day, including weekends and bank holidays.

If you’re paying from an overseas account, you can pay HMRC in sterling or another currency.

  • Account number (IBAN) - GB62BARC20114770297690
  • Bank identifier code (BIC) - BARCGB22
  • Account name - HMRC Cumbernauld

HMRC’s bank address is:

Barclays Bank PLC
1 Churchill Place
London
United Kingdom
E14 5HP

At your bank or building society

Pay at your branch by cash or cheque.

Make your cheque payable to ‘HM Revenue and Customs only’. Write your 16-digit payment reference number on the back of the cheque. You’ll find this on your notice to pay letter. It’s made up of numbers and letters.

If you do not give the correct payment reference number, your payment may be delayed.

HMRC will accept your payment on the date you make it and not the date it reaches HMRC’s account.

By cheque through the post

You can send a cheque by post to HM Revenue and Customs (HMRC). Allow 3 working days for your payment to reach HMRC.

HMRC
Direct
BX5 5BD

You do not need to include a street name, city name or PO box with this address.

Make your cheque payable to ‘HM Revenue and Customs only’. Write your 16-digit payment reference number on the back of the cheque. You’ll find this on your notice to pay letter. It’s made up of numbers and letters.

If you do not give the correct payment reference number or fill in your cheque properly, your payment may be delayed.

Do not fold your cheque.

Include a note with:

  • your name, address and phone number
  • your 16-digit payment reference number
  • how much you’re paying
  • the period you’re paying for

You can ask for a receipt if you want one.

Get help and support

Call the helpline if you:

  • think HMRC made a mistake
  • already have a repayment plan but you get another letter - you can adjust your existing plan or set up a new one
View a printable version of the whole guide

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