My understanding is that there is a difference between top up payments and harship payments. Top up payments, which the IR refer to ac 'ATCPs'- Additional Tax Credit Payments, are made by the Tax Credit Office. Theefore by defination these are Tax Credit payments and would therefore contribute to any overpayment at the end of the year. However, there are also hardship payments which are paid by local Inland Revenue Offices. In my experience (albeit fairly limited in this area!) these are always referred to as hardship payments. So maybe there could be an arguement that as hardhsip payments are not payments of tax credits these cannot contribute towards any overpayment.
Although I think Andy makes a good point. It is often, sorry make that ALWAYS, difficult to get either Top up payments or hardhsip payments, so it might be worth thinking twice before doing anything which could make the IR even more unwilling to make such payments.
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