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Tax credit overpayments 'to soar' after Budget changes

Many more people will have to pay back some of the money paid to them as tax credits in the future, experts have warned.

At the moment credits are based on a family's own estimate of income for the coming year, with households allowed to earn an extra £25,000 before they have to pay money back to the government.

But over the next 18 months that buffer will be reduced to £5,000, meaning that many more families could face repayments.

Brian Milligan reports.

  • 31 Jul 2010