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<p>Overpayments are a feature of the annualized tax credits system. Figures for the
value of overpayments relating to 2019-20 tax credits awards will not be known until
all awards have been finalised in January 2021. <br></p><p>The most recent estimate
of overpayments relates to the 2017-18 award year and can be found in the following
publication.</p><p> </p><p><a href="https://www.gov.uk/government/statistics/child-and-working-tax-credits-statistics-finalised-annual-awards-supplement-on-payments-2017-to-2018"
target="_blank">https://www.gov.uk/government/statistics/child-and-working-tax-credits-statistics-finalised-annual-awards-supplement-on-payments-2017-to-2018</a></p><p>
</p><p>In this year, 1.45 million tax credits awards had an overpayment at the point
of finalisation. The total value of overpayments was £1.55 billion.</p><p>Estimates
of the average value of repayments in each of the last 12 months are not readily available.
Tax credits repayments are repaid through a number of routes, including through the
Universal Credit (UC) system. Information on the monthly value of all these repayments
could only be collected at disproportionate cost.</p><p> </p><p>For the year 2017/18,
HMRC received repayments of £1.29bn. These repayments were made on overpayments from
all previous award years. On top of this, £188m of tax credits overpayments transferred
to DWP as customers migrated to UC.</p>
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