Overpaid salary

goingsenile

I'm looking for some advice- my company have over paid me for the last year due to a payroll error to the tune of £8k gross. I hadn't picked it up yet either as I haven't done my tax return!

I am more than happy to pay back the overpay however I'm, trying to to get my head round the tax implication as I think I don't need to pay back the full £8K and that they need to claim some back from HMRC?

Once we work out the amount I actually need to pay back is the best way to agree a set amount per month and what are the implications of that on this tax year.

My tax situation is already complicated by having by receiving my late husbands pension as well as widowed parents allowance which is untaxed at source and I am keen not to make it any more complicated!

Thanks for any help given.
AJ

TadleyBaggie

The usual way to handle this is to make the repayments from your gross salary, so your tax and NI payments are reduced on the remainder. In theory after the repayment finish you should end up in the correct position.

Manxman_in_exile

If it's happened over several months, I'd be negotiating for a repayment plan in instalments over a similar period. That's what we used to do. Unless you want (and can afford) to repay it quicker, although I see no advantage in this.


Oh - and make sure you see a proper calculation of the overpayment and understand it

goingsenile

Thanks for the replies- just trying to get my head round it all!
AJ