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Help wrong pay

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Hi,
New here so I hope I explain this situation well.

Over the last 6 months I should have been giving £243 a month from my pay as a salary sacrifice for child care vouchers.
Work, or the accountant have messed up by paying the money into my Eden Red account but not taking off me as a deduction before tax.

The accountant has said I owe just over £1400 and need to pay back. Not an issue.
BUT I've paid tax and NI on the £243 every month. Im earning well over £45k so 40% or what ever the rate it now a days.
My thinking is I should only have to pay back the amount less what I've already paid in tax and NI?

Am I correct in thinking this or am I way off the mark?

TIA for replying.

Comments

  • It needs to be processed through the payroll correctly so that the p60 figure is correct. The last 6 months can be put through at once and the tax will correct itself but the NI would have to be recalculated manually and overridden on the payroll. BUT is this a new vouchers account for you? Only higher rate tax payers can only pay £124 per month in this manner unless you were having them deducted before April 2011
  • So would I get a rebate on the NI paid?
    Yes it's a new vouchers account, I was completely unaware of the cap for higher tax payers. It would seam that the accountant is completely useless.
    Any further help would be appreciated.
  • I am sorry for not coming back to you before. I would clarify with the voucher supplier about the amount to be deducted. And just to be clear nothing has been deducted from you so far? Is the accountant suggesting taking it all in one month? If so you would probably have too much ni 'rebated' as most would be at 12% whereas if taken each month then most of the saving would only be 2% due to being higher rate. I would discuss this with the accountant as he should be able to calculate manually then override whatever system is being used. Hope that helps
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