Pay issue after leaving a job

Mickcas · 3 Nov 2022 at 20:00

Hopefully this falls into the correct sub forum.
I left a role mid October. My final pay was short as they took money back due to holidays used that I had not accrued. Since querying it it turns out there was a mistake and have offered to send this money back, but not until there next payroll which is at the end of November.

Now it's great that they have recognised it quickly but it leaves me with some concerns.

Will this likely cause any tax issues, as in November I will have this plus my wage from my new employer.

I have asked if there is an alternative such as a BACS transfer for the balance. But is there any specific leverage I have to push them to return this money sooner if they decline a BACS transfer? As you'd imagine I have budgeted for that money already being in the bank for this month.

Any advice from anyone who may have experience of this?

dlockers · 3 Nov 2022 at 21:39

Nothing you can do. It'll only be a problem if HMRC have a wobble and think you're earning mega $.

If they do, create an online tax account and tell them the correct value for the year and they'll adjust your tax code for you.

Mickcas · 6 Nov 2022 at 08:40

That's a shame. But thank you for the response

HangTime · 7 Nov 2022 at 22:22

Getting 'overlapping wages' is not uncommon when changing jobs, it can sometimes lead to a temporary tax code change but it will usually sort itself out in the end. The worst case scenario is you'll end up getting taxed more than you expect in a future month if you've e.g. benefited from 'double' tax free allowance in the month you were paid by two employers they will then claw that back via tax code adjustment.

NickK · 23 Nov 2022 at 13:16

As a contractor the accountancy of the umbrella company sorted that out. I was overcharged and then ended up with £4.39 for a PAYE tax deduction the second month

Semple · 23 Nov 2022 at 13:22

Assuming it's a flat rate why would there be any tax issues. Yes you might pay a little more in November if receiving pay from both companies, but by the end of the tax year it won't matter which month you received it.