Over payment At work

LiamV89

This month an error in payroll has meant me and some of my colleagues have received £2500 extra in my monthly pay.
As soon as I realised this I transferred the lot into my other bank account with a higher rate of interest :rotfl:

Unfortunately later on that day we each received and Email from payroll explaining the error and requesting that we pay back £2450 by the 10.12.15 (The original payment should have been a one off payment of £50. Instead we received 50 hours at £50per hour)

The Email explains they will rectify the tax and NI but if i pay back the full £2450, I will be out of pocket until my next payment before Christmas.

I'm trying to work out how much tax and national insurance has been deducted before net payment. We each received tax free expenses this month also.

PAYMENTS
Basic Salary 1666.67
Overtime 92.31
On Call 184
On Call BKHOL 2500
Expenses 163.80* Tax free?
Call out 30.77

Total Payments 4637.55

DEDUCTIONS
Income Tax 718
N.I 362.03

Net Payment

3557.52


I have used the tax calculator on the MSE website and I cannot get the same results for income tax.

I would like to know the net amount paid to me of the £2500 So that I can arrange to pay that back and then leave it to payroll to claim back the Tax and NI.

Would i need to be issued with a corrected payslip? and then discard my old one?

My manager is currently chasing this matter up, but the fact I've been incorrectly underpaid in the past which took months to rectify has me skeptical about paying back the full gross amount of £2500 right before Christmas.

Thank you

[Deleted User]

I have assumed that your taxable salary would have been 1973.75 without the additional payment of £2500.

Even with the extra payment you would remain a basic rate taxpayer.

The NIC payable on this is £156.36 - therefore £205.67 (£362.03-£156.36) is attributable to the additional amount.

Tax due on the £2500 is £500 (20%)

The amount owed to the employer would be £2500 less £205.67 less £500 which is £1794.33.

All very rough.

chrisbur

Tax and NI are correct assuming the expenses £163.80 are not liable to tax or NI and you are not in the 40% tax band. I suspect the problem you have with the tax calculator is that it is seeing the monthly figure as your normal wage which if this were the case you would be in the 40% tax band so some of the tax it works out is at 40%.

On the £2500 you received you will have paid 20% of it in tax, £1559 at 12% national insurance and £941 at 2% national insurance.
The after tax/NI figure for £2450 overpayment would be 20% tax, £1559 12% NI and £891 2% NI ie £1765 (all figures a bit rounded so give or take a pound or so.)

[Deleted User]

chrisbur wrote: »

Tax and NI are correct assuming the expenses £163.80 are not liable to tax or NI and you are not in the 40% tax band. I suspect the problem you have with the tax calculator is that it is seeing the monthly figure as your normal wage which if this were the case you would be in the 40% tax band so some of the tax it works out is at 40%.

On the £2500 you received you will have paid 20% of it in tax, £1559 at 12% national insurance and £941 at 2% national insurance.
The after tax/NI figure for £2450 overpayment would be 20% tax, £1559 12% NI and £891 2% NI ie £1765 (all figures a bit rounded so give or take a pound or so.)

Yes - I was not totally sure whether it was £2450 or £2500 as the op states ' paying back the full gross amount of £2500' But now we have both answers :beer:

LiamV89

Thank you for the replies I'll crunch the numbers again when I have the paperwork in front of me.

For the record they requested £2450 back.