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In the tax law of the United Kingdom, tax credit overpayment occurs when a claimant (person filing taxes) has received more Working Tax Credit (WTC) or Child Tax Credit (CTC) than HMRC’s final end of year calculations awards them. This can be caused by official or claimant error or neglect, or simply because the provisional payments were based on out of date information. This article is solely about overpayment, not about details of the tax system as a whole.

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  • Tax credit overpayment (en)
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  • In the tax law of the United Kingdom, tax credit overpayment occurs when a claimant (person filing taxes) has received more Working Tax Credit (WTC) or Child Tax Credit (CTC) than HMRC’s final end of year calculations awards them. This can be caused by official or claimant error or neglect, or simply because the provisional payments were based on out of date information. This article is solely about overpayment, not about details of the tax system as a whole. (en)
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  • In the tax law of the United Kingdom, tax credit overpayment occurs when a claimant (person filing taxes) has received more Working Tax Credit (WTC) or Child Tax Credit (CTC) than HMRC’s final end of year calculations awards them. This can be caused by official or claimant error or neglect, or simply because the provisional payments were based on out of date information. This article is solely about overpayment, not about details of the tax system as a whole. Since the implementation of the Tax Credit Act 2002 (TCA 2002) HMRC consider overpaid tax credit in the same light as unpaid income tax, and can use the full extent of their powers to pursue recovery (aka repayment) Records for each completed year (all awards up to date and closed) show that one third of all tax credit claims have been overpaid. In fact 1/3 are also underpaid, and only 1/3 paid correctly on average. (en)
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