Been over paid, but they want me to pay back the pre deductions amount, where do I stand ?

Soldato
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Am I missing something ? as it seem pretty black and white to me that they want the full amount back. I'm not sure how else you can interpret it, looking at the email then sent sent me the reply was sent from payroll, and the CC my site HR as well as the global HR

I can send screenshot of everything if peeps like

I look at my pay slips the over paided amount was the above stated,

fine what could say HMRC will pay be back on the tax but when?, what about the NI contributions, the pension and student loan payments too. Are people really saying I need to be out of pocket and then chancse up several originations to get some of it back again? for a mistake thats not mine

That's nuts.
No one other than Dowie has said that. Everyone else has said gross. Speak to payroll not people on the internet. Cripes, and you reckon you are eligible to pay back student loan....
 
Soldato
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It doesn't say anything like that. It says you need to pay it back. And if you overpay tax (which you will do if they do take it net) it will be refunded by HMRC.

What'll happen is you'll get paid usual salary gross, say 4000 - then get the 1200 deducted, so your gross for that period will be 2800 and tax/student loan/deductions will be taken from the 2800. No 'normal' pay roll is going to make a mistake and then ask you to pay back the amount net.

Edit: forgot RTI is now a thing, they should be able to take it net and still make sure to fix your Tax/NI contribution. https://www.accountwise.co.uk/correcting-an-overpayment-of-wages/#:~:text=Where the overpayment is deducted,National Insurance have been deducted).&text=The employer should keep a,net pay from the employer.

Edit2: here is how Barnet council handle it (page 3) - recovery is always made gross.
https://www.londoncouncils.gov.uk/node/2323

I trust what you are saying I don't trust then going by what they have stated so far
 
Soldato
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You may be over thinking it.

It seems to me like you were overpaid that amount gross and they want to deduct that gross sum from your salary - over however long you agree.

I've never known anybody to talk net pay. Discussions with payroll at previous jobs have been gross pay. Discussions at interviews have been gross pay. You get the point.

Just ask, it'll be a short chat I'd imagine.
 
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Am I missing something ? as it seem pretty black and white to me that they want the full amount back. I'm not sure how else you can interpret it, looking at the email then sent sent me the reply was sent from payroll, and the CC my site HR as well as the global HR

I can send screenshot of everything if peeps like

I look at my pay slips the over paided amount was the above stated,

fine what could say HMRC will pay be back on the tax but when?, what about the NI contributions, the pension and student loan payments too. Are people really saying I need to be out of pocket and then chancse up several originations to get some of it back again? for a mistake thats not mine

That's nuts.
What you are missing is that one way it could be interpreted is that they want to get their £1260.35 GROSS pay back. There is no need to get HMRC involved, or pension, or student loans. You don't need to get any money from them. Your employer just needs to give them less money in future, just like they need to give you less money in future.

All that needs to happen is for them to reduce your future gross pay by £1260.35. What they want to discuss is a suitable schedule, instead of just docking £1260.35 from your next pay slip (maybe you spent the advanced monies and live from one paycheque to the next).

Effectively what you've had is an advance in future pay. You are not "out of pocket", quite the opposite in fact - you are "in pocket" because you've been given money you haven't earned yet now the employer just needs to offset your future earnings to correct it. Because it doesn't span a tax year, it should make things easy.

The key thing to clarify them is what they mean by "repayment" - my assumption is that any competent payroll department would proceed as I have suggested above. It's arguably ambiguous terminology as really the 'repayment' isn't you paying anyone any money, it is them paying you less money.
 
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Caporegime
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No one other than Dowie has said that. Everyone else has said gross. Speak to payroll not people on the internet. Cripes, and you reckon you are eligible to pay back student loan....

What are you even talking about here? I think you're getting a bit confused as I've told him to speak to the payroll woman at his company.
 
Soldato
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What are you even talking about here? I think you're getting a bit confused as I've told him to speak to the payroll woman at his company.
I think you're confused, you said they'd take it net.

Payroll department. Evolve your antiquated language.

Edit: removing tag so I don't upset you
 
Soldato
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What you are missing is that one way it could be interpreted is that they want to get their £1260.35 GROSS pay back. There is no need to get HMRC involved, or pension, or student loans. You don't need to get any money from them. Your employer just needs to give them less money in future, just like they need to give you less money in future.

All that needs to happen is for them to reduce your future gross pay by £1260.35. What they want to discuss is a suitable schedule, instead of just docking £1260.35 from your next pay slip (maybe you spent the advanced monies and live from one paycheque to the next).

Effectively what you've had is an advance in future pay. You are not "out of pocket", quite the opposite in fact - you are "in pocket" because you've been given money you haven't earned yet now the employer just needs to offset your future earnings to correct it. Because it doesn't span a tax year, it should make things easy.

The key thing to clarify them is what they mean by "repayment" - my assumption is that any competent payroll department would proceed as I have suggested above. It's arguably ambiguous terminology as really the 'repayment' isn't you paying anyone any money, it is them paying you less money.


But I've not been in pocket the 1200 quid due to automatic deductions but they are asking for 1200quid.
 
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Did they explicitly say "we are seeking to reclaim the 1200 quid from you"? Or that they wanted to get back the total 1200? Difference is there isn't it.

In all this time you probably could have got the answer from your payroll dept tbh!

I've already put in tbe thread the email I got form pay roll.

I'm.get no support from my line managers or my HR department so I have to be careful with what I say ans I have to take what they say on face value
 
Soldato
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But I've not been in pocket the 1200 quid due to automatic deductions but they are asking for 1200quid.
This is the bit to focus on:

Effectively what you've had is an advance in future pay. You are not "out of pocket", quite the opposite in fact - you are "in pocket" because you've been given money you haven't earned yet now the employer just needs to offset your future earnings to correct it. Because it doesn't span a tax year, it should make things easy.
 
Soldato
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I'd be absolutely amazed if they were planning to do anything other than reduce your future payslips, at a 'plan' rate to suit you and them, to correct the error on the gross side of the calculation whereby all the tax/NI etc. will sort itself out as you'll be getting paid less and so paying less tax/NI etc. to compensate for what you 'overpaid'.

I can't see anything in their communications that you've pasted here that suggests they'd intend to do otherwise.
 
Soldato
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I'd be absolutely amazed if they were planning to do anything other than reduce your future payslips, at a 'plan' rate to suit you and them, to correct the error on the gross side of the calculation whereby all the tax/NI etc. will sort itself out as you'll be getting paid less and so paying less tax/NI etc. to compensate for what you 'overpaid'.

I can't see anything in their communications that you've pasted here that suggests they'd intend to do otherwise.

Well we just have to see, im awaiting clarification from them.
 
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I had this happen a while back, was overpaid one month because someone in finance wrote my salary down wrong. Wasn't as much as in this case though. They deducted that amount from my next pay to compensate, so everything tax wise equalled out.
 
Soldato
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You could try to push them down that path by responding with something like 'I could accommodate repaying the excess by reduction to my gross pay in 4 installments' (or whatever suits you). If that's not what they were planning to do, they'd soon say so.
 
Soldato
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Well we just have to see, im awaiting clarification from them.
The only way they could take the full £1200 is if they asked you to send them a cheque.

They'll just be reducing your future payslips (before tax) at a fair rate that you both agree on - so your deductions will be less in those months to compensate. Doing it in any other way would cause havoc with HMRC.

In fact, it's nice of this person from payroll to consider your welfare rather than just taking the full £1200 out of next months pay.
 
Soldato
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The only way they could take the full £1200 is if they asked you to send them a cheque.

They'll just be reducing your future payslips (before tax) at a fair rate that you both agree on - so your deductions will be less in those months to compensate. Doing it in any other way would cause havoc with HMRC.

In fact, it's nice of this person from payroll to consider your welfare rather than just taking the full £1200 out of next months pay.

I think legally they can only deduct 10-20% of my salary a month at most
 
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But I've not been in pocket the 1200 quid due to automatic deductions but they are asking for 1200quid.
You've been in pocket for £1200 in gross terms, £800 net or whatever it works out as.
They are asking you to repay £1200 gross, £800 net or whatever it works out as.

You keep saying they are asking for £1200 like they want you to physically transfer them cash for it. They won't want to do this, not only because that WOULD make you out of pocket, but also because it would cause them a massive admin headache.
It would be far, far simpler for all concerned for them to just 'underpay' you in future, this means all deductions are automatically calculated and everything nets off to zero for all parties.

So for "repayment plan" read "schedule of future gross salary deductions". Just ask them to confirm that's what they mean, if they don't then by all means kick off but I think you are getting wound up unnecessarily.
 
Caporegime
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I think you're confused, you said they'd take it net.

Do you think he’ll have to pay back write a cheque or transfer back £1200 despite the deductions taken? In which case I’d suggest you‘re confused. (or maybe you're confusing gross and net). See the above post from @HangTime too.

They can deduct it from his future pay or they could get him to pay back the excess net amount (i.e. the excess amount they paid him).

I should note I had this happen as a temp many years ago (NHS bank staff one summer), I had to pay back the excess rather than have it deducted from non-existent future pay. that meant paying the net amount, i.e. the excesses I'd actually been paid.
 
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