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  • FIRST POST
    • heckmondwike06
    • By heckmondwike06 5th Oct 16, 9:43 PM
    • 77Posts
    • 31Thanks
    heckmondwike06
    Employer overpaid but now demands payment
    • #1
    • 5th Oct 16, 9:43 PM
    Employer overpaid but now demands payment 5th Oct 16 at 9:43 PM
    Following an overpayment by employer when I was on a fixed term contract. I ended my contract on 31/07/2016.

    They paid me in August until end of August.

    They are now asking for the money back. But their demand for repayment is gross payment, and not NET payment.

    How should I deal with this? I can't pay them anyway except a small gesture payment.
Page 1
    • PeppaCoin
    • By PeppaCoin 5th Oct 16, 9:46 PM
    • 85 Posts
    • 67 Thanks
    PeppaCoin
    • #2
    • 5th Oct 16, 9:46 PM
    • #2
    • 5th Oct 16, 9:46 PM
    You should only be paying the net payment back to them, not the gross.

    It was their error so offer a token amount ie £10 a month if you have to.
    Debt at Light Bulb Moment - £18,320
    Current debt - £12,578
    • Wayne O Mac
    • By Wayne O Mac 5th Oct 16, 9:47 PM
    • 116 Posts
    • 143 Thanks
    Wayne O Mac
    • #3
    • 5th Oct 16, 9:47 PM
    • #3
    • 5th Oct 16, 9:47 PM
    Why can't you pay them?
    • TELLIT01
    • By TELLIT01 6th Oct 16, 8:01 AM
    • 2,663 Posts
    • 2,569 Thanks
    TELLIT01
    • #4
    • 6th Oct 16, 8:01 AM
    • #4
    • 6th Oct 16, 8:01 AM
    The repayment should be the net amount not the gross figure. You can't simply say that you can't repay it, but can ask for time to repay it.
    It seems that you have spent money which you knew / suspected you had no entitlement to and can't expect to get away with it.
    • aife
    • By aife 14th Oct 16, 3:45 AM
    • 41 Posts
    • 27 Thanks
    aife
    • #5
    • 14th Oct 16, 3:45 AM
    • #5
    • 14th Oct 16, 3:45 AM
    You need to reach some kind of agreement with them - you shouldn't have spent this money , since you knew you hadn't worked for them , and you could actually be accused of fraud (even though it was their mistake)
    Tell them you used it before you realised what was happening and offer a payment schedule
    Obviously you only owe them what you received - it was their mistake so they need to deal with reclaiming tax / NI , though you'll probably need to cooperate/authorise it
    • Blackbeard of Perranporth
    • By Blackbeard of Perranporth 14th Oct 16, 4:38 AM
    • 3,914 Posts
    • 23,103 Thanks
    Blackbeard of Perranporth
    • #6
    • 14th Oct 16, 4:38 AM
    • #6
    • 14th Oct 16, 4:38 AM
    Why can't you pay them?
    Originally posted by Wayne O Mac
    Wrong answer!

    You should pay the net payment back, the amount they paid you. And insist they adjust their records for tax and national insurance.
    No one dreams of escape
    From the aroma of a cheap jar of coffee
    • Gavin83
    • By Gavin83 14th Oct 16, 10:45 AM
    • 3,872 Posts
    • 5,869 Thanks
    Gavin83
    • #7
    • 14th Oct 16, 10:45 AM
    • #7
    • 14th Oct 16, 10:45 AM
    Wrong answer!
    Originally posted by Blackbeard of Perranporth
    Why? It's a good question. Surely the OP was aware he shouldn't have been paid the money and therefore shouldn't have spent it. I'd imagine most people would notice an entire months salary entering their account they knew they weren't entitled to.

    Anyway no, you can't ignore this and you owe them the money. You'll need to negotiate a payment plan with them if you can't afford it in one go (although I still don't understand why you don't have it) but it's ultimately up to them what they accept. I'd imagine they'll refuse £10 a month. If you can't come to an agreement then it'll ultimately end up in court and it will be up to a judge to decide how much you can afford based on your income.
    • TBagpuss
    • By TBagpuss 14th Oct 16, 12:44 PM
    • 4,870 Posts
    • 6,384 Thanks
    TBagpuss
    • #8
    • 14th Oct 16, 12:44 PM
    • #8
    • 14th Oct 16, 12:44 PM
    As others have said, you have to repay the nt amount, and the employer will need to correct the postion with HMRC in relation to tax & NI, although you will need to provide them with authority to do so.

    You can request a reasonable time frame for payment. If you ask to repay in installments then it would be reasonable for the employer to ask you to provide a breakdown of your income and outgoings so that they can see the offer you are making is reasonable.

    how come you didn't realise that you'd ben over paid?
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