Salary overpayment

Deb213

I have been informed that payroll have been overpaying me for 16 months following my reduction of hours in December 2019. I was not aware of this as my salary did go down so I assumed that it was worked out right.  They now saying I need to pay this back, but I am sure that I have read that if the tax year has ended, it is the net amount I should pay back not the gross. I'm very confused as to how this all works with tax, NI and pension contributions. Also, I have lived with this wage for this amount of time and therefore,  thinking this was correct, have spent accordingly.  Now to be told that I not only will be getting less a month than I thought,  I will also have deductions coming from my salary for this overpayment has left me very worried.

Marcon

Deb213 said:

I have been informed that payroll have been overpaying me for 16 months following my reduction of hours in December 2019. I was not aware of this as my salary did go down so I assumed that it was worked out right.  They now saying I need to pay this back, but I am sure that I have read that if the tax year has ended, it is the net amount I should pay back not the gross. I'm very confused as to how this all works with tax, NI and pension contributions. Also, I have lived with this wage for this amount of time and therefore,  thinking this was correct, have spent accordingly.  Now to be told that I not only will be getting less a month than I thought,  I will also have deductions coming from my salary for this overpayment has left me very worried.

Ask your employer to set out in writing:

1. exactly how much the overpayment has been and how it impacts on tax, NI and pension
2. their proposed schedule for repayments of the overpayment and how tax, NI and pension will be accounted for in the repayments 

If their proposed schedule isn't something you can manage, ask for a longer period to repay.