Tax problem with old employer

[davepoth]

I have a bit of a fun problem with my old company. I just got a letter through the post along with a payslip for September. This is funny because I finished there in August. The company writes to say that, due to a payroll error they have paid me for September, and also accidentally overpaid everyone in the company by 5%. So they've asked for a cheque to return the money, net of tax and other deductions, to them.

My big problem with this is that I'm not convinced I'll get another job this tax year, what with the economy the way it is. Also due to the payout they gave me on leaving, I don't really need to so I might go travelling. And critically, this extra month has taken me over the lower threshold for income tax at £6,475 (a stty paying job since we're 5 months into the year) so I think any rebate I would have been given at the end of the tax year will be reduced?

Any ideas where I stand with this?

[Soovy]

davepoth said:

I have a bit of a fun problem with my old company. I just got a letter through the post along with a payslip for September. This is funny because I finished there in August. The company writes to say that, due to a payroll error they have paid me for September, and also accidentally overpaid everyone in the company by 5%. So they've asked for a cheque to return the money, net of tax and other deductions, to them.

My big problem with this is that I'm not convinced I'll get another job this tax year, what with the economy the way it is. Also due to the payout they gave me on leaving, I don't really need to so I might go travelling. And critically, this extra month has taken me over the lower threshold for income tax at £6,475 (a stty paying job since we're 5 months into the year) so I think any rebate I would have been given at the end of the tax year will be reduced?

Any ideas where I stand with this?

Yes. You have to give back the overpayment or it's theft.


Pay it back.

[LC23]

Lol - I have been overpaid and they want their money back. Do I have to give it to them? Er, one guess. PS - please see Soovy's answer for a hint.

[davepoth]

Obviously I have to pay them back, but I'm a little concerned that I will end up out of pocket because they have buggered up my tax. Thoughts?

[scirocco265]

Once you re-pay the money, it will adjust your YTD figures to show your Total Gross for the year is under the threshold (as per your post). Your ex-employer should issue you with a new P45. Therefore, all figures will show as if the overpayment this month had never happened.

[davepoth]

Brilliant.

[Eric Mc]

Do you agree that you were overpaid?

Have they explained in detail how YOU were overpaid.

I would write to them asking to show to you IN DETAIL the calculation of your wages for the month in question showing both the original "incorrect"! calculations and the revised "corrected" calculations.

Get them to prove in detail the extent to which they have overpaid you before agreeing to pay anything back. Get someione else to look at the calculations as well just to double check everything.

[davepoth]

I have a payslip for September, even though I left on the 3rd of August. That shows everything.