Salary overpayment in March - effect on Tax Credits - Help

frankbutcher1878

Hi,

My employer overpaid me by £170 in my March Salary and are to recover it again (minus the tax and NI I had to pay on it) in April.

However, when I received my P60, it still had a gross earning as though I had actually earned that £170 when clearly I haven't earned anything as I am paying it back next month.

I'm worried that this is going to effect my entitlement to the NHS exemption certificate as it takes my earnings to above the £15,276 cut off to qualify (by about £12!). Had my employer not messed up, then I would have fell within this cut off point.

I've approached my employer and explained this situation and requested a P60 that correctly reflects what I have earned and not to include this overpayment that is not mine and needs to be paid back. They tell me that the P60 cannot be amended as the repayment will come out of my earnings next month which is the new tax year, but they are willing to write me a covering letter with relevant contact details should the Tax Credits Office need to queiry it. I can't for the life of me see HMRC accepting a covering letter from my boss stating they made a mistake, surely the only thing they are interested in is the P60 figure.

I am going to be punished for my employers mistake

Now an exemption may not sound much of a big deal, but when your partner has a lifelong illness and spends between £20 to £30 a month on prescriptions, it is quite important to us.

Any advice greatly appreciated.