Overpayment of commission

lozkinjones

Hi all.

I've been overpaid by roughly £1,300 by my employer on a commission scheme that I didn't meet the criteria to hit. I have agreed to them taking the full amount from my future commission payments (next one, April) but my question is re Tax & NI. Obviously the month I was overpaid, I also paid a much large tax & NI contribution - will this automatically be balanced when they reclaim the money, I do I only need pay back the net rather than gross commission?

Thanks

Ja7188

Your April pay packet should include your basic salary, plus any other commission earned, less the overpayment and as I understand it, you'll be taxed in April as if you earned exactly the same each month for tax year 2018-2019...

The only way I can think of in which you'll actually lose out if you end up being a basic rate taxpayer this year and a higher rate taxpayer next year. If you're a higher rate taxpayer this year and a basic rate taxpayer next year, I believe you'll be better off...