How repayment of salary affects taxes

rekh5678

In the tax year 19/20 I had a 5 month sabbatical from work. For the first 6 weeks of this I was overpayed by £3004, I notified employers immediately and I am repaying this in instalments of £304 which commenced in April 2020 when I returned to work.

On looking at my p60 for 19/20, my total yearly salary includes the additional £3004 that I am now paying back. However my current salary for the tax year 20/21 is still my usual full yearly earnings. 

Should my yearly salary for 20/21 take into account the £3004 debt I am paying back to my employers? And effectively be £3004 less?  

Any help at all would be much appreciated! 

Comms69

No? Why would it?

chrisbur

Was the £3004 overpaid the gross or net figure and how is it being repaid?

ceremony

I'd seek advice about this from someone qualified who can actually look at your payslips. My understanding of the rules if you were overpaid in one financial year and are repaying it the following year is that they should regenerate the P60 for the year that you were overpaid, to reflect what you should have been paid. The employer has to then reclaim the tax from HMRC, and you only repay the amount minus the tax.

That's just my understanding of the rules, and I'm not an accountant. Definitely get it checked.