Overpaid Bonus Tax/NI/Student Loan

TargaryenDragon8 · 20 March 2018 at 11:27AM

This is my first post so hi everyone

Looking for some advice as I have been overpaid by my employer. My salary is correct but they accidentally paid me £271 extra towards my annual bonus. I questioned it because the amount differed on my payslip from what the letter stated I would get, so I wanted to check which one was correct. Unfortunately it was the bonus payment that was wrong. This was today so it's the end of tax year payment.

They have asked me to pay this back either next month or over the next two months but before I agree to anything I just have a few questions. Obviously this means I have paid more tax, national insurance and student loan than I would have if they had paid me the correct amount, but they haven't said anything about re-calculating the cost of this. If they deduct £271 from my next salary, would all of this re-calculate itself and I would pay less to make up the difference for what I have paid this month? I'm confused as to how they would calculate this and not sure if it makes a difference with it being the cross over of tax years? I was also wondering whether there would be any benefit to me to pay it back over 1 or 2 months or whether tax/NI/student loan would be the same regardless?

Sorry if they seem like silly questions but I want to check I do not end up worse off. Thanks in advance for any replies.

bamgbost · 20 March 2018 at 11:50AM

You are right to be worried.
And maybe you need to mention it to HR / Payroll.

As indeed the Student loan, and tax ./ NI has been gone. And it will not a straightforward correction with regards to those.

Madbags · 20 March 2018 at 12:53PM

They should just correct this months pay to what it should be and then you transfer back the difference to the company. End of tax year or not it's not too late to adjust the payroll or even the year end.

ohreally · 20 March 2018 at 1:13PM

Be prepared for payroll being unsure (clueless) over next steps to correct the ballsup. Keep copies of all communications between you and management and certainly keep your paylines if you don!!!8217;t already and expect this to drag out.

Ask your line manager how payroll intends dealing with situation.

TargaryenDragon8 · 20 March 2018 at 3:36PM

Thanks for the replies. Payroll were initially confused with the matter but they finally offered me the best resolution from my point of view, exactly what Madbags said above. They have calculated the amount I owe them to be £159 after tax etc which works out from my calculations. They are going to amend it, re-issue a new pay slip and I have transferred them back the difference. Much easier!

Overpaid Bonus Tax/NI/Student Loan

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