Overpayment

[RJL33]

Hello,

My mother has been having some issues with her employer re. an overpayment of salary.

Mum has agreed to repayments with her employer, who have been more than understanding.

The issue is, the employer is adamant they want repayment of the gross amount from her. As she never received the gross amount (nearly £2000 of the gross was tax and national insurance overpayment).

Does anyone know where Mum stands regarding the overlaid tax and national insurance? I advised mum to ask her payroll manager, but the reply she had is that it is nothing to do with them and she will have to pay back the full gross overpayment.


Many thanks,
Rich

[RJL33]

I've just read through my post and I'm not sure if my question makes sense.

So...
My mum's gross pay over a year was £18000, it should have been £13000 (

Her employer is telling her that she has to pay back £5000, but she didn't actually receive £5000.

The difference in the net pay she received and the net pay she should have received is actually less than £3000. Nearly half of the money she was overpaid went straight to the tax man..

[RJL33]

Does anyone have any thoughts on this?

[Amethyst]

Your mum still works at the same company ? If so, then the tax/NI should adjust across future pay packets - I'll tag Ula for you to check how it works xxx

[RJL33]

Ok, thank you

[RJL33]

And yes, mum still works for the same company.

[ULA]

As your Mum continue to work for the same company will she be backing back the money via a deduction of a set amount from her salary each month?

[RJL33]

Initially she agreed to set up a direct debit payment, so that she could keep her salary and "debt" separate. However, her HR department have since told her that this is not possible.

Now, it is being arranged that the "debt" will be taken directly from her salary each month. This is the reason for my initial question. Mum has been informed that she must pay back the gross over-payment amount from her salary.

This is fair enough, provided that that tax adjustments are made, so that money from her initial over-payment, that went directly to the taxman/NI, is refunded to her in some way.

For some reason her employer believes that she will have to pay back, from her salary, the money she received (Net) plus the money that was paid to the tax man.. all the while no adjustments will be made re. Her new tax payments (going forward).

Is it possible that she can refuse a deduction from salary and choose instead to set up a direct debit payment? Mum needs to know how exactly she will pay back the net over-payment, but any time she tries to discuss this with payroll they have a tantrum and tell her she has to pay the gross over-payment back. She then asks how tax adjustments will be made and they get even more shirty, and tell her none need to be made. The result is Mum has no idea how much money she will be left with each month, which is causing her a great deal of worry.

Thank you again for your help.

[ULA]

Yes the company has to deal with the gross amount that was overpaid. When the payroll is run each month your mother's gross salary should be deducted by the agreed monthly repayment and the tax and NI will adjust accordingly.

It is far easier for sorting out the tax and NI situation for the repayment to be made via payroll.

The payroll department should be able to run a "draft" payroll and give your mother an idea of what she will be taking home each month until the overpayment has been repaid.