working back overpayment, but what happens to tax?

skattykatty

Saw some paperwork and figured out I'd been overpaid for a year and a half. Spoke to union for advice but have had none, despite my repeated phonecalls and reps repeated agreeement to call me back. Anyway, told my boss and we have discussed how I could work back the overpayment. I'm fine with this BUT have only just thought what are the tax implications? I obviously paid more tax when I was been overpaid. What happens to that? Where does it go? Is it up to my employer to claim it back? Do you think it's worth persuing Union advice, or is this the best 'deal'?

I will write to state how I am paying back the overpayment but, to date, have received no written confirmation of what's happened and the amounts involved. Basically, I don't want to have to work the extra hours for a year and a half and then still be chased for it!

ohreally

You are absolutely correct to flag up the tax element and the employer needs to recognise this when reaching agreement (what about NI and pension contributions?) Ask for a detailed breakdown on the deductions element of the overpayment and how they intend to allow for this factor.

Send the steward an email seeking to confirm the content of previous discussion and ask that they commit to get back to you. Copy in one of the branch officers as well.

skattykatty

Many thanks. I have just sent the email.