Ex-employer continues paying

BettySpofkins

Hi -

Bit of an odd one this. I left my previous job in October, but I've just spotted that I've been paid in full for November.

You'd think I'd be pleased, but presumably it's not as simple as that. Does anybody know what the legal situation is, or what I should do now?

In particular, I'm self-employed now so I don't want this to muck up my tax situation. So for example if I send the cash back, but they don't do the right thing with HMRC, will I end up paying tax on money I don't have?

Bit confused, to be honest. I'm also staggered at how inept people in HR and payroll can be!

KiKi

BettySpofkins wrote: »

Hi -

Bit of an odd one this. I left my previous job in October, but I've just spotted that I've been paid in full for November.

You'd think I'd be pleased, but presumably it's not as simple as that. Does anybody know what the legal situation is, or what I should do now?

Erm - call them?! Only they can sort it out. It's obviously an error, unless you're owed money from the end of October?

The legal position is that (assuming it's a mistake) you will have to pay the money back, and it will be spotted as some point. So best to call and get the money sent back ASAP.

In particular, I'm self-employed now so I don't want this to muck up my tax situation. So for example if I send the cash back, but they don't do the right thing with HMRC, will I end up paying tax on money I don't have?

No, that will be sorted when you do your end of year tax return. Just get the money back to the employer by calling them and telling them they've made a mistake. They should rectify that and the NI / tax that goes along with it.

Bit confused, to be honest. I'm also staggered at how inept people in HR and payroll can be!

Mistakes happen, though - it might actually be your manager not informing them you've left; it's not always HR! Just give them a call and that can put your mind at rest.

KiKi

scheming_gypsy

you need to let them know as they can reclaim it at any time. Not sure on the tax side, but it's not that uncommon on here for people to be paid too much.


Although, have you been paid in full for November? as it's a bit early for November's pay. You normally get paid a month in arrears so it could be your final / Octobers pay.

Acc72

scheming_gypsy wrote: »

you need to let them know as they can reclaim it at any time.

Just to confirm, the company may find the error (if there has been one) and ask the former employee to repay the money, but there is no way that they can "reclaim" any money direct from the former employees bank account.

Are you certain that you have been overpaid ?

Have you received your P45 ? (you will need this for your end of year tax return now that you are self employed).

Just ring the comany payroll and chase the P45.

From this they will probably discover their error - just play it by ear from there.

They may ask you to repay the money (or possibly not ? ....) and you can then agree on a repayment schedule (after they have provided the P45 and a full breakdown of what has been paid and how the overpayment has been calculated etc.).

BettySpofkins

Great advice chaps, as always.

It's definitely an overpayment, and no P45 has arrived so I need to chase that anyway.

I think I know who to get in touch with and she's pretty friendly so fingers crossed.

t0rt0ise

scheming_gypsy wrote: »

Although, have you been paid in full for November? as it's a bit early for November's pay. You normally get paid a month in arrears so it could be your final / Octobers pay.

Nah.. not at all. All the jobs I've had get paid for the current month. I got my pay today for November.

Acc72

BettySpofkins wrote: »

It's definitely an overpayment, and no P45 has arrived so I need to chase that anyway.

It sounds as though payroll haven't made you a "leaver", and that the November salary payment was automatically generated (did you receive a payslip ?).

Just give them a ring saying that you haven't received a P45.

If they ask about the salary payment, just say that you haven't checked your bank account and see how they play it ......