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How to avoid overpayment

What is an overpayment?

Overpayment means that we paid you too much money. This results in:

  • us sending you a bill at the end of the tax year, and
  • you having to pay us back the money.

It is easy to avoid overpayment. Simply follow the guidelines below.


  • If you choose weekly or fortnightly payments, estimate your income as accurately as possible. If uncertain, it is better to overestimate your income. If we underpaid you, we will pay you back after the end of the tax year (31 March). Underpayments are calculated and issued from July onwards each year.
  • Consider annual payment in a lump sum after the end of the tax year (31 March) if your income is uncertain. Lump sum payments are paid from July onwards each year.
  • Provide all the information and documents required when applying for Working for Families Tax Credits, especially an IRD number for every child.
  • Make sure that you and your spouse or partner, or ex-spouse or partner complete a tax return if you are required to do so. We calculate your entitlement after you have filed your returns.
  • Tell us about any change of family or income circumstances immediately.
  • Make sure that you receive Working for Families Tax Credits payments from one source only. You can receive tax credit payments from either Work and Income or us, but you cannot receive them from both Work and Income and us at the same time.

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