Overpayment advice

[flypanam]

When did this happen? A few days ago or several months ago? Is your pay slip wrong or just the net payment they made to you?

If I did this I would ask you for the net overpayment back from you, then I would undo then rerun the payroll for you with the correct gross figures and upload the new reports to HMRC with the new correct figures and send you a new pay slip.

I cant see any need for you to return anything else. That makes no sense.

On Friday. They've already told me I'll have to pay the gross back.

 

[flypanam]

I don't see how you can pay back anything you haven't received - so yes to the £1267 but the tax etc is their problem not yours.

If you are in a union speak to them urgently.

I've sent an email, and am waiting for them to get back to me.

 

[quimcunx]

On Friday. They've already told me I'll have to pay the gross back.

I'd double check/challenge with the manager. They've maybe just made (another) mistake when writing the letter. I honestly don't see how they can ask you to pay back more than you've received in error. This is their problem to sort out, not yours.

 

[flypanam]

Thanks. Will do.

 

[equationgirl]

Hope you are ok flypanam, this type of thing is very stressful.

 

[Elpenor]

I don’t think flypanam will be actually sending a net payment to their employer, it sounds like their gross pay will be reduced over the next few months to claw back the overpayment.

But I agree this is unsettling. I always argue that payroll errors cost the company as the person affected probably can’t focus on their day job as well while they’re worrying about what the error means for their pay.

 

[flypanam]

I don’t think flypanam will be actually sending a net payment to their employer, it sounds like their gross pay will be reduced over the next few months to claw back the overpayment.

But I agree this is unsettling. I always argue that payroll errors cost the company as the person affected probably can’t focus on their day job as well while they’re worrying about what the error means for their pay.

The thing is I want to. I want them to take the net. I also want them to deal with HMRC and the LGPS. I don't want this to drag on as my wife is expecting in two months and I would like to have my regular salary when she's on maternity pay.

 

[flypanam]

Hope you are ok flypanam, this type of thing is very stressful.

Thanks I'm okay. Just want to sort it out asap.

 

[Raheem]

On Friday. They've already told me I'll have to pay the gross back.

I would guess they will then reduce your tax and NI payments in your next payslip and subsequent payslips until you are square. Have they said this is what they will do?

 

[Elpenor]

The thing is I want to. I want them to take the net. I also want them to deal with HMRC and the LGPS. I don't want this to drag on as my wife is expecting in two months and I would like to have my regular salary when she's on maternity pay.

In that case I’d demand to make the net repayment - the reason the payroll department wants to do it gross is that it means less work for them then adjusting for a net overpayment.

But given the circumstances you describe I would accept a net overpayment if it was my payroll.

 

[equationgirl]

I would guess they will then reduce your tax and NI payments in your next payslip and subsequent payslips until you are square. Have they said this is what they will do?

Well I would hope that's what they would do, but I'm not sure I'd rely on it if it wasn't in writing.

 

[equationgirl]

My former glorious employer always always got my tax wrong, they seemed to ignore changes from the tax office. There's no way I would have relied on anything some of payroll staff said would happen if it wasn't in writing.

 

[flypanam]

I would guess they will then reduce your tax and NI payments in your next payslip and subsequent payslips until you are square. Have they said this is what they will do?

No, the only thing they have said is that they will get back to.

 

[Raheem]

No, the only thing they have said is that they will get back to.

I'm pretty sure it is what they are supposed to do, and what the majority of employers would do.

So, say you pay £10 a month in tax and NI, but then one month they mistakenly pay £20 on your behalf. The next month after that, you pay nothing and you're quits. Your scenario might be more complex, but the crucial thing is the employer sorts it out and it is not left to you.

I wonder if this is actually what they plan to do, but they are explaining it craply.

 

[AnnaKarpik]

I think it is being explained badly; what I would expect is for them to reduce your next month's pay by the gross overpayment which will result in your pay being £1267 less in that month.

 

[flypanam]

I've just emailed them again offering to payback the net over payment and explained our circumstances. Hopefully this will be sorted one way or another. Whatever lingering good will I had for the place is gone. I'll be looking for work as soon as my paternity leave is over.

 

[Johnny Doe]

I don't see how you can pay back anything you haven't received - so yes to the £1267 but the tax etc is their problem not yours.

If you are in a union speak to them urgently.

This - you can't pay back tax they've incorrectly paid to HMRC - you've never had it to pay back

 

[Johnny Doe]

I think it is being explained badly; what I would expect is for them to reduce your next month's pay by the gross overpayment which will result in your pay being £1267 less in that month.

This. Next month's gross pay

 

[flypanam]

I got an email back. They haven't made a decision today. I'll find out tomorrow. This is getting painful.

 

[Puddy_Tat]

Are you in a union? If so, would advise talking to them (may be the kind of thing where local rep wants to talk to branch office or whatever)

There is a concept of 'unlawful deduction from wages' and I'd have thought that taking any overpayment that employer might have made to the tax-person (rather than to you) would count. (I'm not a lawyer, it's a long time since I was a union rep and I never had to deal with this sort of thing.)

Alternatively, this is ACAS's page on the concept.

But may be worth using the phrase in the next e-mail which might make the buggers think twice.

 

[flypanam]

Thanks all for the advice. I went in today and I got told two different things. Anyhow it ended up with me paying back the net over payment. I'm happy with that but I dont trust them not to make a cock up next month.

oh and I got very half hearted apology.

 

[Elpenor]

For what it’s worth I would ask when the payroll cutoff is for July and email them a few working days prior to check that your pay is correct and ask for them to confirm what your net pay is

 

[equationgirl]

Thanks all for the advice. I went in today and I got told two different things. Anyhow it ended up with me paying back the net over payment. I'm happy with that but I dont trust them not to make a cock up next month.

oh and I got very half hearted apology.

Don't blame you - they haven't exactly proven to be reliable. I am glad they have seen sense.