In the majority of examinations the revised award will not lead to an in-year recovery of overpaid credits. This is because most potential overpayments will be reviewed following the Section 17 end of year declaration and only the net amount overpaid at the year end will be recovered.

However, Section 28(6) Tax Credits Act 2002 allows an overpayment to be recovered in-year where there is no entitlement to either WTC or CTC for the whole period of claim. Overpayments can be recovered in-year in the following circumstances.

No tax credit entitlement

The claim was only for WTC and you have established they did not meet the remunerative employment criteria for the period of claim

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