payroll issues - Over payment

butterfly_18

I have been informed by my employer that I was overpaid for seven months due to an administrative error and they organised a repayment plan of over £400 per month for 12 months. The overpayment was calculated on the gross and not the net amount. I am informed that retrieval of tax and NI are a matter for the employers and I offered to pay the amount I actually received in four equal payments. These payments would be made outside of my salary. My employer is still asking for the gross amount and I'm planning to change my job shortly.
Can someone please explain why they have not accepted my offer based on the NET over-payment figure? Why do I need to pay something that I didn't receive?

TELLIT01

The theory behind recovering gross figures is that the employer should correct the figures provided to HMRC and the amount of tax paid, and NI contributions, would be corrected within the PAYE system. That is obviously dependant on the employer actually taking that action. If they don't correct the information held by HMRC the OP would have overpaid tax and NI.

Brynsam

butterfly_18 wrote: »

I am informed that retrieval of tax and NI are a matter for the employers and I offered to pay the amount I actually received in four equal payments.

Can someone please explain why they have not accepted my offer based on the NET over-payment figure? Why do I need to pay something that I didn't receive?

Informed by whom - a source you can quote to your employer?

Why are they pushing for the gross amount? To make their own lives easier. Stand your ground!

antrobus

butterfly_18 wrote: »

.... I offered to pay the amount I actually received in four equal payments. These payments would be made outside of my salary.

No, the correction has to be made 'inside' your salary, in order to apply PAYE.

butterfly_18 wrote: »

.
Can someone please explain why they have not accepted my offer based on the NET over-payment figure? ....

Because your employer is obliged by law to operate PAYE.

butterfly_18

Thank you for your replies, What happens if I resign or move to a new job and they have no salary to work on.

nicechap

butterfly_18 wrote: »

I have been informed by my employer that I was overpaid for seven months due to an administrative error and they organised a repayment plan of over £400 per month for 12 months. The overpayment was calculated on the gross and not the net amount. I am informed that retrieval of tax and NI are a matter for the employers and I offered to pay the amount I actually received in four equal payments. These payments would be made outside of my salary. My employer is still asking for the gross amount and I'm planning to change my job shortly.
Can someone please explain why they have not accepted my offer based on the NET over-payment figure? Why do I need to pay something that I didn't receive?

butterfly_18 wrote: »

Thank you for your replies, What happens if I resign or move to a new job and they have no salary to work on.

They can take as much as possible back from your final salary, they can record you owe them money in any reference to a future employer. They could sue you which if you do not pay up could end up in a CCJ, debt collectors, etc etc.

Kynthia

If they don't deal with it gross, then the HMRC will have your taxable income for the year wrong. Your tax should work itself out over the year to be correct even if you leave your employer, just give HMRC a call if you think you have overpaid but the next employer should deduct less if you havr overpaid once they process your P45.

badmemory

Definitely agree with post 7 & others & your employers only have 4 months to put it right. But an employer who can make such an error for 7 months without noticing is not one that can be depended upon to get "stuff" right. How are your pension contributions going?