Overpayments and underpayments are a normal part of the tax credits system. This is because tax credits entitlement is not decided until a final decision is made, usually after the end of the tax year for which the award has been given. This means you may have been paid more, or less, tax credits ...

Your tax credit award is based on your annual income and your circumstances at the time you claim or renew your claim. If your circumstances change during the award period, it can affect the amount you are entitled to.

Tax credits claims last for a maximum of one tax year (6 April to following 5 April). This section describes how the renewal process works.

This page covers tax credit payments, how they are paid and the frequency of payments. 

Tax credits are worked out using yearly rates and yearly income figures. We explain how disregards work, which year’s income is used, what to do if the estimate is wrong and what to do when your income changes.

The amount and type of income you have will affect how much tax credits you might get. The rules are the same for child tax credit, working tax credit or both. This page explains what counts as income for tax credits.