Repayment of overpaid wages

[Lucifa42]

Hi,

I was informed by my work that I have been paid an allowance for something for a number of years I shouldn't have been receiving.
I have no problem with this and am happy to pay the money back.

What I'm wondering though:

The allowance is 18 a month, but obviously after tax I don't receive the full amount of that so does that mean I should only pay back the post tax amount and the company claims the rest from HMRC?

Do I have to repay the full amount at once, or am I entitled to pay back in instalments?

I haven't yet met with my employers to work out the finer details of what I am due to pay back but I just want to be ready with the full information when I do.

Thank you

[leclerc]

Re: Repayment of overpaid wages

They should consider repayment in installments.....

[Tools]

Re: Repayment of overpaid wages

They can only deduct from your wages with agreement by both parties and to a maximum of 10% per pay period (£100 overpayment taken in 10 instalments of £10). When they deduct the money it should be deducted at gross ( calculated within your wages before PAYE & NI ) . This will even itself out tax wise as you will not be liable to pay tax/NI on that amount.

Probably not explained it very clearly but that is how I see it and am happy to be corrected if wrong.

[Lucifa42]

Re: Repayment of overpaid wages

Thanks for the response. My company is being very reasonable and I've offered to pay back £100 back a month (gross) so only hurts me to the tune of about 80 a month until the end of the year.

[teaboy2]

Re: Repayment of overpaid wages

Can you afford to repay £100 a month though - Bear in mind its their error that caused this, not yours and your financial circumstances and priority debts and needs take priority.

Also how many years has this been overpaid for, as they are only legally able to reclaim back up to 6 years.

[Lucifa42]

Re: Repayment of overpaid wages

Yes I can afford it, and its been about 5 years.