Overpayment of wages while on maternity leave

threebabiesmama

Hi bit of back ground I'm currently on maternity leave. Have been since jan. On smp
I recieve tax credits and housing benefit. Also on a debt management plan with step change

My company changed pay roll company and the last 2 months my wages have been higher than they should be. Last month I contacted them and they informed me there had been a pay roll error and they couldnt begin repayments from my wages until I returned to work ie not from smp.

These overpayments impact my housing benefit,end of year tax credits estimates and also mean I pay significant tax,ni and pension payments where as I shouldn't be paying them.

CAB calling on wednesday but I was just wondering if anyone had any advice re overpayments 

sharpe106

Can you offer to start paying it back now so it does not effect your benefits going forward.

TBagpuss

Do you have the amounts which re overpaid? I suspect that the problem is that they can't (or think they can't_ make deductions from SMP. However this from  Croner (who are employment specialists ) seems to suggest that they can, and generally they can take back funds with your consent in any event. 
I would suggest that you flag up that the over payments will cause you a major problem by resulting in loss of tax credits etc and ask them to fix it now. You could also speak to the DWP / HMRC about your tax credits and ask whether there is anything you can do from that end on the basis that you have been overpaid and the money will be re-claimed. 

threebabiesmama

So last months payments post tax etc overpayment was around 600 but I think this month is around 1500 🙈

Waiting for my payslip to land on the portalk

Having baby brain though as to whether I will owe them the gross amount or the amount after deductions 


Should I pay the full amount back or should I take up the offer to do a repayment plan and pay off some debts?


Where do companies stand legally when they do overpay 

Thankyou

threebabiesmama

And most importantly how do I force their hand to take more time to make sure its correct next month? Really struggling with time with babies and children home to keep calling round and replying to emails. Just want my normal smp!

sharpe106

If you have been over paid you need to repay it some point. They might have thought they were being helpful waiting until you got back from maternity leave.

 

You only need to pay back what you actually get as the overpayment, so tax, national insurance is the employer problem.

 

If it is worth paying it off in one go or doing a repayment plan you will have to do the calculations yourself.  Generally paying it of over time is better as it is basically an interest free loan but as you said it will affect you benefits, you need to work out which is better the loss of benefits or the amount of interest payment you would save paying off the debts.