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How do you pay back a tax credits overpayment when you move over to universal credit?

5 replies

Veryinteresting24 · 06/02/2024 09:39

I have received a message to tell me how much universal credit I will be receiving for the first time this week but there is no mention of the tax credits overpayment.

I googled and apparently I will be receiving a letter but it might be in a few months. I was wondering how you pay it back as with tax credits they took an amount out of my award every month. Thanks if anyone knows.

OP posts:
Bromptotoo · 06/02/2024 09:45

In effect the same way any other repayment is recovered. They might alter your tax code or deduct it from UC.

DrCoconut · 06/02/2024 09:47

They are taking 1/8 of my UC back until it's paid off.

MamaMode · 06/02/2024 09:48

A small amount will start to be deducted from your UC at some point. I've attached a pic of part of my UC statement so you can see how the deduction will appear on it😊

How do you pay back a tax credits overpayment when you move over to universal credit?
riotlady · 06/02/2024 09:59

They take it out of your UC. Initially they took a HUGE amount off ours, but I rang up the debt repayment line and sorted out a smaller amount, they were really helpful about it

Veryinteresting24 · 06/02/2024 10:01

Ok thanks for that. I feel like it’s hanging over me as it was a large amount from about eight years ago and I still haven’t paid it all back!

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