Overpaid Wages

loonywitch

Okay, so this is a little bit of a rant and for a little advice.

Basically, at the middle of May, I gave my ex-employer notice that I intended to terminate my contract with them on the 29th June. Well within the notice period required. And by ex-employer, I mean I gave it to my line manager and a manager over her.

Yesterday I checked my account for the wages from my new employer to discover they have still paid me!! Meaning my tax isn't right on my new wage.

I had a sneaky feeling this would happen...to cut a long story short, it's due to internal office politics...one manager will have assumed the other will have done it, the other will have made a point of not doing it because she had been asked to help out with something else. All being well but doesn't help me.

I've never been in this situation before. I have only ever been emergency taxed once before and that was years ago and was rectified on the following wage.

The first step is to obviously contact my ex-employer to ensure no further payments are made but what happens with the tax on my new wage? The tax code is OT1 and will probably continue to be so until my ex-employer sorts it out (which I'm not confident in them doing due to new restructure!) The easiest thing for me to do is to bank the wage I shouldn't have into a savings account but now I'm short on the wage I'm supposed to be living (and budgeting) on!

This is extremely annoying as this is in no circumstances my fault and yet I'm going to have to be the one doing the chasing around to sort it out. The worst bit? The ex-employer is making cuts and redundancies left, right and center to save money.

Has anyone experienced this? Is there a quicker way to prevent the increased in tax on the new wage? Will the code automatically be changed if not? And does the tax automatically rectify itself like it used to?

Thank you all in advance

Wyndham

You need to sort it out, pay the money back, and then get a P45 to take to your new employer which will then sort out the tax code. Obviously it's annoying and hassle for you, but unfortunately it will need you to take action.

I'm sure you realise that you can't keep the money?

loonywitch

Yes that's the reason for the transfer to the savings account so I know that I won't accidentally break into it. Unfortunately due to the size of the company I can't pay it directly back otherwise it'll go into the abyss and then they'll still write to me for 'money owed' and I will be expected to provide proof I paid it back.

[Deleted User]

Ask your new employer for a P46 and tick box B that will put you on 810L M1 in the meantime to prevent you paying too much tax.