Overpaid at work but what about tax?

Bexs2010

All they have said is that I owe them £ and that’s what I need to repay but I’m not willing to until I know that I won’t be out of pocket for their error 

sharpe106

Ask them to show you the calculation or just ask them about the tax and national insurance

Manxman_in_exile

They should give you (or should already have given you) a breakdown of the overpayment showing how it is made up.  This would show you month by month what they should have paid you (gross pay owed less tax less NI etc equals net pay paid) as compared to what they did pay you (gross pay less tax less NI equals net pay).

You've actually been overpaid the difference between the two net figures, and that's what they should eventually be recovering from you - a net figure.

(I assume your employer has a proper computerised payroll system that does all this sort of stuff automatically?  Is the person who has "explained" all this to you a pay-clerk who understands properly how the system works?  I ask because to a manager who may not fully understand the system it will be "obvious" that the repayment must start off with gross pay, but they may not understand that the only bottom line effect on your bank account will be net pay.  I worked as a manager in the NHS for 25 years and overpayments were very common.  I can see that an overpayment stretching over two financial years might be a bit less clear cut, but the principle's the same).

bucksbloke

The easiest way for them to do this and for your tax to be correct, is to reverse the overpayment as a negative earning (so pay back the gross) and then they process what you should have received as a positive earning in the same period - the system will pay you the net.