Overpaid at work but what about tax?

Bexs2010

Since Jan 2020 I’ve been overpaid by work, I do lots of overtime and my pay varies however due to a role change I’ve been overpaid which I’ve only just found out due to actually accessing my payslips. payroll have admitted it’s their error and I’m happy to pay back the money that I’ve been over paid but is it right that I have to pay the gross amount back? 

Does anyone know where I stand on Tax & NI? As when I’ve been overpaid I never actually see the full amount after Tax and NI. Jan - March would have been in last tax year but April would be in this years... any help would be appreciated 

sharpe106

They can only reclaim the net part from you. How they want to reclaim the tax and national insurance part is up to them. Not your problem.    

comeandgo

sharpe106 said:

They can only reclaim the net part from you. How they want to reclaim the tax and national insurance part is up to them. Not your problem.    

Why can they only claim the net part when the employer paid the gross amount and tax and ni is a transaction between individual and HMRC.?

[Deleted User]

 Never heard of them only claiming net. I had to repay the full amount and benefited by the extra money in my pension

liz_bartun

They should correct it through their payroll software and work out the difference in net pay to re-coup

Manxman_in_exile

comeandgo said:

sharpe106 said:

They can only reclaim the net part from you. How they want to reclaim the tax and national insurance part is up to them. Not your problem.    

Why can they only claim the net part when the employer paid the gross amount and tax and ni is a transaction between individual and HMRC.?

??????????????

But the only actual transfer of an amount of money representing tax and NI is between the employer and HMRC.  So far as the employee is concerned it only appears as a "paper" transacton on the payslip.  Reversing entries will be processed automatically by payroll when the correction is made.  (At least that's my experience of overpayments and payrolls)

Or are you questioning the "...they can only claim..." bit?  I'm sure they could claim the gross amount if they wanted to but it would **** me off if I were the employee.

sharpe106

_shel said:

 Never heard of them only claiming net. I had to repay the full amount and benefited by the extra money in my pension

How did you benefit in your pension? You mean they paid in extra contrubitions because of the mistake?

sharpe106

Why can they only claim the net part when the employer paid the gross amount and tax and ni is a transaction between individual and HMRC.?

If they collected it all from you how would you get it back of the government? Payroll would be far easier.

[Deleted User]

sharpe106 said:

_shel said:

 Never heard of them only claiming net. I had to repay the full amount and benefited by the extra money in my pension

How did you benefit in your pension? You mean they paid in extra contrubitions because of the mistake?

Exactly that, increase from both of us which they could not take back. 

Bexs2010

I’m not in the pension and I’ve been told I can pay it back monthly but 3 months they overpaid on last years tax and April’s would have been on this years. I’ve asked them to tell me how much I’ve had from them after Tax and Ni but they can’t tell me that. This is what Payroll have come back 

I have asked payroll for this and have been advised that they are unable to provide the amount less tax and NI, for many reasons:-

1.      Tax is cumulative basis and depends on how much Gross pay in the current month paid like overtime etc.

2.      This amount will be being paid back monthly not in one lump sum.

This is why all they can do is provide you the GROSS amount and deduct each month. The less Gross you get paid the less tax & NI you will have deducted.

Will it be better to pay it all back in one go then sort out tax and NI with HMRC? 

General_Grant

They should deduct the gross amount from your gross pay.  Is that what they are proposing to do?