Wages messed up by Capita

joseph9a

I work for the NHS who have started to us Capita for there HR services. At the start of this new tax year they completely messed up my wages and i never received any payslip, instead I was given advance. This was in April/May when this happened. I thought the amount they gave me was an estimate of my wages. I roughly pick up £1,000 each month and the advance I received was like roughly £1,000. I presumed this was all dealt with.

Last month I worked a lot of overtime like 50 hours as I'm going on holiday and needed to pay it off this month. So this month I had my standard pay which is roughly £1,500 before tax, all my overtime, and a recover of the £1,000. As a result of this I paid WAY over the top tax, national insurance and student loan. all were at least double the amount. It basically looked like I had earned about £3,000 in one month which I hadn't (I wish)


I don't understand why the £1,000 advance went through and was taxed again. Surely they should have given me my full wages as an advance back in April/May and then put it through again to be taxed on. It feels as though they have gone roughly he picks up £1,00 after tax so we will advance him that. so I've already paid my tax although officially it wouldn't have gone to HMRC as it was an advance and now they have put the £1,000 on as recovery and I have been taxed on it. so basically I feel like for the month of April/May I have earned £1,500 been taxed etc on it and picked up £1,000 and then been taxed etc on that again if you understand.


Also I was wondering should I have been contacted before they made the recovery and been asked about arrangements to pay it back as the error was not mine in the first place so why should I suffer now. I would have preferred for them to recover a small amount each month for the rest of the year so I wouldn't notice it. as they have took it all now I have no money at all until the end of the month. What has annoyed me the most is that if I wouldn't have done all the overtime I may not have had enough to pay me rent bills etc. never mind paying for my holiday.


The same thing happened to a member of staff a few months ago and she said she was given money back, am I entitled to do the same?


Any advice would be greatly appreciated.


Thanks


Joe

somethingcorporate

£3k a month does not put you into the top tax bracket, you'd still be in the 20% band.

It sounds like a mess, what have payroll actually said about it?

joseph9a

They told me that everything is correct and I am upto date. I just said to them though had it not been for the overtime I may not have been able to pay my rent what would you have done then? They weren't very sympathetic.

They told me my boss should have told me the advance would be coming out but surely that is payrolls job. Do you think I should have been offered a payment plan to pay back the arrears rather than them just deducting it from my wages without my consent?

I have requested coies of all the pay slip and payments recieved.

By the way thank you for taking the time to read my post

somethingcorporate

I think it would be reasonable to offer you the chance to discuss repayment. If it was automated there would be no chance to negotiate the timing of when they took the money but it would have been courtesy to let you know!

Have you spoken to your boss about it? Perhaps you can get them to take it up with payroll - in our company (a very big one) we are always advised to deal with pay issues via our boss.

agrinnall

It's difficult to advise without actual figures - tax is all about the detail.

To start with, from your last pay slip post the pay to date figures: gross, net, tax, NI, any other deductions such as pension and student loan repayment, and your tax code.

Derwent

The correct payroll procedure for dealing with wage advances is as follows :-

1. You receive an "off payroll" amount which is equivalent to your net pay.
2. As it has not been through the payroll system, no tax or NI has been formally deducted, nor has your employer's NI liability been recorded, so nothing paid over to HMRC at that time.
3. The following month (or the period when the advance is reclaimed), your gross pay should be double the normal amount.
4. This allows the correct income tax, employees NI and employers NI to be calculated and recorded.
5. In effect, your net pay after tax and NI should be double the normal monthly net pay or thereabouts.
6. The original advance should then be deducted as a non-taxable item from the calculated net pay.
7. This should leave you in a position where the advance has been paid back and your net pay for the month is back at its normal level.


What you seem to be saying is that your employer has simply added the advance amount onto the gross pay and then taxed it, when in fact the advance amount is your normal after-tax pay.

The employer should have "grossed up" the advance to add back tax and NI before adding it on your payslip, and the actual advance amount should only appear as a non-taxable employer's deduction.

In effect, you have been underpaid by the amount of tax and NI calculated on the advance (i.e. about £200) because the net value after tax is £800 and they have then deducted the £1,000. Where as what they should have done is added £1,200 to your gross, leaving a net of £1,000 after tax, and then deducted the £1,000 to leave you in a neutral position.

joseph9a

Thanks derwent I do not have my payslip in front of me but I will check the figures when I get home

madaminx

Sorry to hear about your salary mess up - really hope you get it sorted.

Hope you don't mind my asking but can I ask which part of the UK you are from?

Many thanks

joseph9a

madaminx wrote: »

Sorry to hear about your salary mess up - really hope you get it sorted.

Hope you don't mind my asking but can I ask which part of the UK you are from?

Many thanks

I'm from Liverpool