Overpayment of salary and tax- gross repayment to employer?

wine_night

Hi all,

Any payroll advisors out there, I would appreciate some advice!

My previous employer overpaid my last salary to me, as they mistakenly paid me for one whole month when my contract finished mid month.

They have requested the overpayment back, and whilst I don't have a problem with the calculation of the overpayment based on days worked etc, they have asked for the overpayment to be repaid gross, whereas I received it net.

Is it common for employers to request the gross amount to be repaid when the employee has been paid net of tax and national insurance, or should I query this? If I repay the gross figure will this be reflected in my P45 and the tax rebated in the new tax year?

Thanks in advance!

HappyMJ

You repay the net value and they claim the tax and NI back from the HMRC on the next pay run (i.e they don't send as much as they would have done normally). They should also give you a revised P45 with the correct figures on it. Higher figures than they should be would affect your tax credits claim if you were to have a claim next year.