I left work due to depression, now they say I've been overpaid.

MrUkGuy

Hey guys, my first post.
This site seems very informative, but I have a dilemma.

I was diagnosed with depression and had some time off work, eventually I quit. (Off work for 3 months).
I just recently received a letter stating I owe them £966 in overpayments.

I've only recently been re-employed as bank staff covering sick/adsent employee's and I earn £200 a month at most at the moment, it's the best I can do with my current confidence.

They said I could pay back a lesser amount of £600 if I paid in one lump sum this week but I don't have that kind of money?

I'm panicking and I have no idea what to do?!

Any advice would greatly be appriciated.

Andy_L

1st make sure it is an overpayment & not an admin !!!!-up (by definition they've already made at least one).

Then contact your former employer & tell them you can only afford to pay back eg £20 /month. They will either agree, write the overpayment off or threaten to take you to court. If they take you to court then the judge will look at you earnings and expenditure & say that £20/mth is all you can afford (unless you've got other income/savings) so they won't do that.

custardy

is it me or does them offering to accept a lower amount seem strange?
how would that workl with tax/NI contributions already made?

chipmunk

Good advice from Andy and custardy.

This situation is probably the last thing you need but don't let it get you down. There's always a solution to a problem like this and I agree that it seems a bit strange in the first place. I too think the company made an error and are trying to cover themselves.

You've done really well by tackling it head on - that takes some doing when you've been so poorly. Well done.:T

Good luck, I'm sure everything will turn out OK

jules1213

If the employer has made the paymrnts in error, AND it was reasonable for you to expect the payments were correct AND repaying the money would put you in hardship - then you may be able to argue that they should write off the whole amount.
Go to CAB they should tell you this and may be able to write to the employer.
Good luck.
jules

jules1213

If the employer has made an error in overpaying you, AND it would be reasonable for you to believe the the payments were correct at the time, AND repaying the overpayment would leave you in financial hardship - you may be able to argue that the whole amount should be written off. Go to CAB who should advise the same and may be abel to help by writing to the employer.
Good luck
Jules

MrUkGuy

I ended up paying the £600 after borrowing it from family.
I went to CAB but they said even because of my circumstances I should take the offer.

missile

Pleased to see you have resolved the problem. I would write and ask them to say how they will resolve overpayment of tax NHI etc. You need a revised P45. Unfortunately now you have no bargaining power and you may find them less than helpful.

Mikeyorks

missile wrote: »

I would write and ask them to say how they will resolve overpayment of tax NHI etc. You need a revised P45. .

They will have netted that (tax / NI) off the settlement figure (even before the reduction). And will simply reduce the amount paid to HMRC on their next monthly payment (as it's just a composite - and doesn't reflect individuals)

Revised P45 isn't allowed. They have to advise HMRC of the error - and they will instruct the new employer to vary the start figures.