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MF 4K: Calculation of instalments: 31 July 2024 to 31 March 2025
or “How to work out your tax credit payments from July 2024 to March 2025”
You could also call this:

“Getting back extra tax credit money you shouldn't have received”

If you receive more tax credit money than you should have for a tax year, the Commissioner can take steps to get that extra money back. This applies to tax credits like the Abating WFF tax credit or the Minimum family tax credit.

The Commissioner can recover the extra money as if it were income tax that you need to pay. If you’re in a relationship during that tax year, both you and your partner are responsible for paying back the extra money.

You won’t get a penalty for this overpayment if it happened because:

  1. You applied for a tax credit before 1 April 2007
  2. You could have been a transitional resident when you applied
  3. You told the Commissioner before 1 June 2007 that you didn’t want your application to be treated as an election for transitional resident status

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Next up: MF 6: Overpayment or underpayment of tax credit

or “Rules for handling extra or missing tax credit payments”
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Part M Tax credits paid in cash
Payment of credits

MF 5Recovery of overpaid tax credit

  1. This section applies when the Commissioner considers that the amount of a tax credit under section MD 1 (Abating WFF tax credit) or ME 1 (Minimum family tax credit) set off or refunded to a person for a tax year is more than the proper amount.

  2. The Commissioner may recover the excess as if it were income tax payable by the person. However, if, throughout the tax year, the person is in a relationship with a spouse, civil union partner, or de facto partner, the person and that spouse or partner are jointly and severally liable for the payment of the excess.

  3. The person is not liable for a shortfall penalty under Part 9 of the Tax Administration Act 1994 in relation to an amount that the Commissioner may recover under this section if the amount set off or refunded is more than the proper amount because the person—

  4. applied for a tax credit under section 41 of that Act before 1 April 2007; and
    1. was eligible to be a transitional resident at the time of the application; and
      1. notified the Commissioner before 1 June 2007 that they did not wish the application to be treated under section HR 8(5) (Transitional residents) as an election under section HR 8(4).

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        Notes
        • Section MF 5(1): amended, on , by section 487 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
        • Section MF 5(2): substituted (with effect on 1 April 2008), on , by section 364(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
        • Section MF 5 list of defined terms apply: inserted, on , by section 74 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).