Overpayment

NewToAllThis49

Hi all. I left my public sector job at end August and despite me doing everything I could to prevent it happening they paid me for September. The pay included my voluntary severance pay, 4 months backdated pay rise (as a pay dispute was recently settled) and the September pay I would have been paid if still in post. 

The amount they are asking to be repaid seems a little higher than I would expect and so have asked for breakdown of what it includes for tax and NI for the backdate pay and the Sept pay. I have also asked what happens to the pension deductions they have made. They have said that they are unable to provide any further information beyond the amount I owe and that they will send a Early Year Adjustment to HMRC who will then in due course let me know if any tax NI and pension overpayments have been made. 

I am more than happy to pay back the amount I owe (and indeed was straight onto them to let them know the day I got paid) but I want to make sure I’m not paying more than I owe. 

Apologies for long post, any advice on I) how I can calculate the tax and NI myself for the backpay and the erroneous pay and ii) what happens to pension payments erroneously deducted would be very welcome. 

Marcon

NewToAllThis49 said:

Hi all. I left my public sector job at end August and despite me doing everything I could to prevent it happening they paid me for September. The pay included my voluntary severance pay, 4 months backdated pay rise (as a pay dispute was recently settled) and the September pay I would have been paid if still in post. 

The amount they are asking to be repaid seems a little higher than I would expect and so have asked for breakdown of what it includes for tax and NI for the backdate pay and the Sept pay. I have also asked what happens to the pension deductions they have made. They have said that they are unable to provide any further information beyond the amount I owe and that they will send a Early Year Adjustment to HMRC who will then in due course let me know if any tax NI and pension overpayments have been made. 

I am more than happy to pay back the amount I owe (and indeed was straight onto them to let them know the day I got paid) but I want to make sure I’m not paying more than I owe. 

Apologies for long post, any advice on I) how I can calculate the tax and NI myself for the backpay and the erroneous pay and ii) what happens to pension payments erroneously deducted would be very welcome. 

In other words, let the innocent party do the legwork.

I'd stand your ground and say you are of course(!) happy to repay but need full details before you can do so, as you feel the figures do not correspond with what you would expect to see; and that adjustments to tax and NI are for them to handle, not you. I'd also remind them of the efforts you made to help them avoid their own error...

If they still refuse to provide the information, I'd continue to stand your ground, reiterating that you feel unable to pay until you have clear information of what you are being asked to repay; and that any delay on their part will inevitably mean a delay in enabling you to make such a repayment.

NewToAllThis49

Marcon said:

NewToAllThis49 said:

Hi all. I left my public sector job at end August and despite me doing everything I could to prevent it happening they paid me for September. The pay included my voluntary severance pay, 4 months backdated pay rise (as a pay dispute was recently settled) and the September pay I would have been paid if still in post. 

The amount they are asking to be repaid seems a little higher than I would expect and so have asked for breakdown of what it includes for tax and NI for the backdate pay and the Sept pay. I have also asked what happens to the pension deductions they have made. They have said that they are unable to provide any further information beyond the amount I owe and that they will send a Early Year Adjustment to HMRC who will then in due course let me know if any tax NI and pension overpayments have been made. 

I am more than happy to pay back the amount I owe (and indeed was straight onto them to let them know the day I got paid) but I want to make sure I’m not paying more than I owe. 

Apologies for long post, any advice on I) how I can calculate the tax and NI myself for the backpay and the erroneous pay and ii) what happens to pension payments erroneously deducted would be very welcome. 

In other words, let the innocent party do the legwork.

I'd stand your ground and say you are of course(!) happy to repay but need full details before you can do so, as you feel the figures do not correspond with what you would expect to see; and that adjustments to tax and NI are for them to handle, not you. I'd also remind them of the efforts you made to help them avoid their own error...

If they still refuse to provide the information, I'd continue to stand your ground, reiterating that you feel unable to pay until you have clear information of what you are being asked to repay; and that any delay on their part will inevitably mean a delay in enabling you to make such a repayment.

Thanks Marcon, that’s exactly my frustration as I’ve already spent a lot of time with emails to the employer and the pensions provider as well as trying to do my own sums! I will stand my ground though, as you say. 

TELLIT01

If they know how much is owed they must have a breakdown of the figures.  As Marcon says - stick to your guns and restate that you must have a full breakdown of the figures before making any repayment.

A somewhat different situation, but a few years ago DWP sent out demands for repayment of benefits allegedly overpaid.  In most cases they were unable to provide evidence of the overpayment and their own Decision Makers threw the demands out.

NewToAllThis49

TELLIT01 said:

If they know how much is owed they must have a breakdown of the figures.  As Marcon says - stick to your guns and restate that you must have a full breakdown of the figures before making any repayment.

A somewhat different situation, but a few years ago DWP sent out demands for repayment of benefits allegedly overpaid.  In most cases they were unable to provide evidence of the overpayment and their own Decision Makers threw the demands out.

Thank you I’ve been back to them and insisted on a breakdown

Nothanks

Yep. Another vote here for the “Mr Employer, this is a you problem - I’ll pay when I get the breakdown.”

chrisbur

The employer does not seem to be very knowledgeable about what is required.  They say....
"they will send a Early Year Adjustment (nearest I can find is Earlier Year Adjustment) to HMRC who will then in due course let me know if any tax NI and pension overpayments have been made. "

They would actually appear to need a correction on an FPS (Full Payment Submission) from....

https://www.gov.uk/payroll-errors/correcting-your-fps-or-eps

"If your employee has stopped working for you

Include them in your next FPS and correct their year-to-date figures. Include their original ‘Date of leaving’ and put the same or a later ‘Payment date’ than the one shown on their final FPS. "

This I assume would correct tax/NI and produce a new net figure.  Any pension adjust might have to be done through whoever runs the scheme

penners324

I'd request the adjusted payslip before paying anything back. 

NewToAllThis49

Thanks everyone for comments - this has now been escalated to ‘senior case managers’ to provide a breakdown - which they previously said they definitely couldn’t do! Will wait and see and not pay a penny until I have it. Thanks again. 

Marcon

NewToAllThis49 said:

Thanks everyone for comments - this has now been escalated to ‘senior case managers’ to provide a breakdown - which they previously said they definitely couldn’t do! Will wait and see and not pay a penny until I have it. Thanks again. 

Amazing what people will do when they realise bully tactics aren't working... Good for you.