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Work over payment

Hi I’m wondering if anyone can help me. I’ve just been told I’ve been overpaid by an amount for the last 2 months this is the gross pay I am needing to pay back of 1000 in total. I’m just confused as to if I will be losing out on tax and NI could anyone explain this to me please 

Comments

  • QrizB
    QrizB Posts: 19,038 Forumite
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    You shouldn't be paying anything back directly.
    Your employer should be reducing your pay by an equivalent amount, over at least the same period as the overpayments were made.
    So eg. if they overpaid you by £500 a month for two months, they should be reducing your pay by £500 for two months.
    If this would reduce your pay to less than NMW, I would think they will have to spread it over a longer period.
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  • Grumpy_chap
    Grumpy_chap Posts: 18,547 Forumite
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    jdot1969 said:
    Hi I’m wondering if anyone can help me. I’ve just been told I’ve been overpaid by an amount for the last 2 months this is the gross pay I am needing to pay back of 1000 in total. I’m just confused as to if I will be losing out on tax and NI could anyone explain this to me please 
    As QrizB said, the repayment should be the same amount as the overpayment but processed through payroll. 
    This will automatically resolve the income tax.
    NI can be more complicated as the reduced payments may take you below the threshold for NI whereas the increased payments may have pushed you into the threshold.  Unlike income tax, NI is assessed per pay period rather than annually.  You may need to ask your employer to ensure this is managed to be neutral for yourself.
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