Work overpaid me after tax - They will deduct but is this correct?

StarCrossed

Hiya,

I've accidently received someone's after tax travel loan credit of about £100.

I've notified my HR department who have said they will deduct it from my next pay. If they deduct this before tax will this cost me money? Will they deduct it after tax..?

Sorry I am a bit tired today and I can't get my head round it!

jobbingmusician

Is your tax this month the same as usual? It may be that you have paid extra tax this month on this loan credit.

If you haven't, then I think your problems are over. Either they will deduct it from your PRE-TAX pay next month, in which case you would pay less tax (and this is VERY unlikely to happen, if you haven't paid tax on it this month) or they will deduct it from your post-tax pay, in which case it hasn't cost you any tax.

If you have paid extra tax on it this month, you need to check that next month's tax is, indeed, less than usual. This is a more likely scenario, but as (IIRC) most payroll programmes work out the tax each month on the total earned in the year to date, it should sort itself out automatically next month.

I have no idea what an 'after tax travel loan credit' is, but it may in any case be something which sits outside the tax system, in any case! In which case your tax won't be affected this month or next

StarCrossed

No, no tax on it so phew!

Thanks I find these things sooo hard to work out sometimes hehe