Payment after leaving job
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Discussion

red_slr

Original Poster:

19,944 posts

212 months

Friday 3rd January 2020
quotequote all
Quick one - not my issue and not sure of best answer - if someone leaves a job say 31st Oct. They receive their final pay all ok.

Then the month later their old employer sends them their pay as normal by accident.

Ex employee sends back the money no issue. However they then get a letter from old employer asking for additional money for tax and NI.

Thoughts? My opinion is that its up to the employer to sort that out on their next HMRC submission?

Cheers!

psi310398

10,615 posts

226 months

Friday 3rd January 2020
quotequote all
I'm not sure I follow, and I'm sure I'm being thick, but bear with me - surely the employer would have deducted both before sending the net pay? Why would the payee owe anything?

red_slr

Original Poster:

19,944 posts

212 months

Friday 3rd January 2020
quotequote all
You are not misunderstanding and yes that's what I said. Up to the originator to sort out their own mess IMHO?

psi310398

10,615 posts

226 months

Friday 3rd January 2020
quotequote all
red_slr said:
You are not misunderstanding and yes that's what I said. Up to the originator to sort out their own mess IMHO?
Entirely. In my experience, employers' payroll operations routinely need to square off items with HMRC after the fact/inadvertent errors. I'd be surprised if a month went by in most decent sized places without at least one correction.


Countdown

47,274 posts

219 months

Friday 3rd January 2020
quotequote all
red_slr said:
Quick one - not my issue and not sure of best answer - if someone leaves a job say 31st Oct. They receive their final pay all ok.

Then the month later their old employer sends them their pay as normal by accident.

Ex employee sends back the money no issue. However they then get a letter from old employer asking for additional money for tax and NI.

Thoughts? My opinion is that its up to the employer to sort that out on their next HMRC submission?

Cheers!
Employers Payroll department must be completely incompetent if they’re asking OP’s mate to repay the statutory deductions. They can roll back the payroll, mark the employee as a leaver or on nil pay, and the re-run the payroll. This will correct the tax, Ees NI and Ers NI which means they wont overpay HMRC.

Jasandjules

71,961 posts

252 months

Friday 3rd January 2020
quotequote all
psi310398 said:
I'm not sure I follow, and I'm sure I'm being thick, but bear with me - surely the employer would have deducted both before sending the net pay? Why would the payee owe anything?
This.

Flooble

5,737 posts

123 months

Saturday 4th January 2020
quotequote all
Countdown said:
Employers Payroll department must be completely incompetent if they’re asking OP’s mate to repay the statutory deductions. They can roll back the payroll, mark the employee as a leaver or on nil pay, and the re-run the payroll. This will correct the tax, Ees NI and Ers NI which means they wont overpay HMRC.
Absolutely. Employer's Payroll department are already in a pickle given that with RTI they have likely already transmitted the wrong data to HMRC so need to do a correction anyway.

I also can't quite fathom from where the OP's mate is supposed to find the money for the statutory deductions.

red_slr

Original Poster:

19,944 posts

212 months

Saturday 4th January 2020
quotequote all
Yep well I think we are all on the same page so they will be told to Foxtrot Oscar.

The funny thing is you would think this is a small employer but nope its a massive institution and they even put it in writing that they require the net (edit meant gross) pay back.

Most odd.


Edited by red_slr on Saturday 4th January 10:41

Kent Border Kenny

2,219 posts

83 months

Saturday 4th January 2020
quotequote all
red_slr said:
Yep well I think we are all on the same page so they will be told to Foxtrot Oscar.

The funny thing is you would think this is a small employer but nope its a massive institution and they even put it in writing that they require the net pay back.

Most odd.
But that’s right, though, it is the net pay which should be returned, i.e. the amount received, and not the gross amount.

Countdown

47,274 posts

219 months

Saturday 4th January 2020
quotequote all
red_slr said:
Yep well I think we are all on the same page so they will be told to Foxtrot Oscar.

The funny thing is you would think this is a small employer but nope its a massive institution and they even put it in writing that they require the net pay back.

Most odd.
if they’re only asking for the “Net Pay” [which is correct by the way] they’re NOT asking for the tax and NI.

red_slr

Original Poster:

19,944 posts

212 months

Saturday 4th January 2020
quotequote all
Sorry nursing a hangover, gross is what I meant to type.

Countdown

47,274 posts

219 months

Saturday 4th January 2020
quotequote all
red_slr said:
Sorry nursing a hangover, gross is what I meant to type.
It’s a mistake by the Employer. Clearly he can’t repay them the gross pay when he only received the net pay.