Salary overpayment & auto enrolment pension

Moneypenney007

I’m freelance but work quite often for a company. I was overpaid my salary by 7 days and contacted the company straight away to tell them of their mistake. 

I worked out how much I believed I should return to them but asked them to double check.
There was a discrepancy in the figure, which I queried. They sent me their working out in which they said I was due to pay them back the auto enroll pension payments that had been paid out. 

As that money had been taken from the gross amount I said they needed to recover that amount from the pension provider as this was their error in overpaying me and I should not have to be out of pocket. They said that they cannot recover auto enroll pension funds and I am liable to pay this money back for the additional 7 days pension which was paid from my gross salary (I pay my own tax and NI as a sole trader). They have even threatened me with debt collection agency. 

I know that money went into my pension pot (for days I didn’t work) but that is way down the line. My net salary for this job would be down by quite a lot to cover the money they took for the pension. 
Should I just pay up? Am I being daft? I assume the can put a hold on my auto enroll pension to recover the 7 days when I next work for them for 7 days (which is soon) . 

Marcon

Moneypenney007 said:

I’m freelance but work quite often for a company. I was overpaid my salary by 7 days and contacted the company straight away to tell them of their mistake. 

I worked out how much I believed I should return to them but asked them to double check.
There was a discrepancy in the figure, which I queried. They sent me their working out in which they said I was due to pay them back the auto enroll pension payments that had been paid out. 

As that money had been taken from the gross amount I said they needed to recover that amount from the pension provider as this was their error in overpaying me and I should not have to be out of pocket. They said that they cannot recover auto enroll pension funds and I am liable to pay this money back for the additional 7 days pension which was paid from my gross salary (I pay my own tax and NI as a sole trader). 

You say you are a 'sole trader and pay your own tax and NI', but also refer to being paid a salary and pension contributions.

What exactly is your status - especially in the eyes(!) of HMRC?

Moneypenney007 said:

They have even threatened me with debt collection agency. 

I know that money went into my pension pot (for days I didn’t work) but that is way down the line. My net salary for this job would be down by quite a lot to cover the money they took for the pension. 
Should I just pay up? Am I being daft? 

Debt collection for what can't be a huge amount unless they are paying hugely over the minimum? This doesn't sound a healthy relationship or one which is going to endure if the battle lines are drawn so early and so aggressively by the company. 

Moneypenney007 said:

Should I just pay up? Am I being daft? I assume the can put a hold on my auto enroll pension to recover the 7 days when I next work for them for 7 days (which is soon) . 

Not as easy as that, I'm afraid, given the way auto enrolment regs work.

Have you actually spoken to someone at the company and tried to reach a sensible agreement about the way forward?

Moneypenney007

I’m schedule D  - because I am freelance and when I earned over a certain amount they auto enrolled me into the pension. The only deduction I get from the invoiced amount I charge them is the pension. 

They took  too much pension from my gross salary. I have contacted their payroll department on several occasions as soon as I discovered their mistake,  but they are being quite rude with me - hence I  thought I’d check here if anyone knew where I stood. 

Marcon

Moneypenney007 said:

I’m schedule D  - because I am freelance and when I earned over a certain amount they auto enrolled me into the pension. The only deduction I get from the invoiced amount I charge them is the pension. 

They took  too much pension from my gross salary. I have contacted their payroll department on several occasions as soon as I discovered their mistake,  but they are being quite rude with me - hence I  thought I’d check here if anyone knew where I stood. 

Why? You aren't an employee and from what you've posted you don't meet the rather vaguer definition of 'worker', so it's hard to understand what's going on here - although you've referred more than once to 'salary', which is only a concept with employees, not a self-employed freelancer, who simply has a rate of pay.

Are they actually making an employer contribution from their own funds and reducing your invoice by the 'employee' amount, or simply deducting the full amount (ie employer + employee) from your invoice? Either way it's wrong - if you are truly self employed then your invoices should be paid in full and you need to make your own pension provision.

However, if they're putting in some of their own cash, I'd pay the 7 days and be grateful!

penners324

Depends on the pension company.

With Nest they certainly can reclaim the over payment by adjusting that month's contribution schedule.