Pay Issue

mysk_girl

Can anyone help? My employer has overpaid me this month by £243. Now they say that they will take it back next month which is fine, but how do I get the overpayment of NI refunded? I know the tax works itself out automatically, but I don't think this happens with NI? It's about £30 I've overpaid and as I'm on SMP, this money is really needed.

I've been paid £885.54 (NI = £30.18) instead of £642.54 (NI = ?? But not much I don't think...)

Any advice? The payroll lady didn't seem to know what I was talking about, she said it would self correct but I don't think it does for NI or am I wrong?

silkyuk9

I was over paid a while ago and informed pay roll, they sorted it all out themselves so im thinking your payroll will also. its quite simple for wage clerks to do this kind of thing and it will happen lots of occasions.

McKneff

As far as I am aware it will self correct.

The only time it doesnt is when you dont actually pay NI normally, then get a wage that takes you over the threshold, pay NI that week, but you cant claim it back.

My common sense is telling me that you paid more this week on the high amount and will pay less next week on the low amount, but is that too simple I ask myself.

Im sure some payroll person will be along to confirm or not.

mysk_girl

That's kind of what I mean - I have paid £30 odd NI this month instead of £1ish. Next month I will not be due to pay any NI as my salary will be SMP only (£541.80 - I still had 1 week at half pay this month). So will I get a refund of £29 next month? I though NI couldn't be refunded once it was paid?

dawyldthing

i should imagine it won't be refunded as basically the ni would have been split between 2. So say if normally you get 600 and pay 30 national insurance then one week you get 800 and pay 40 which would mean the week you get 400 you would pay 20, so it would end up evening out in the end, if that makes sense (this way round is doing it as though it is on the lot, but it would be the same principle for anything after the threshold

mysk_girl

The problem is that over this month and next month I should be due to pay £1 in NI. Instead, because it will be split wrong I will pay £30, as there is a threshold below which you don't pay NI.

Or have I understood it all wrong? £29 is not insignificant on £540 a month...

mrschaucer

Have a read of this http://www.hmrc.gov.uk/ni/refunds-complaints/claimback.htm and see if you can claim it back if you overpay. (Sorry, can't do it for you, in rush!)

mysk_girl

Thanks for the link, but this scenario is not covered there. Hopefully they will know what to do! I run a payroll for a preschool but only 2 staff members pay NI and I've never made this particular mistake so I don't know how it could be rectified, if at all. It seems most unfair that I would be left £29 down because of employer error.

Jacky-f

You need to ask your payroll people to rerun your last pay to correctly calculate the net pay you should have received. Then when they run this pay they can calculate the correct net again and deduct from it the net overpayment you have just received.

Hope that made sense!

McKneff

Sorry, just ignore my posts then, seeing as I wasnt aware of all the facts

Post 9 is the best advice..