Salary Overpayment.. Can They Do This??

Originally Posted by Speedy Claire

we have paid tax and N.I. on this overpayment so where do we stand with this.

Devil and deep blue sea. You will pay less tax this year as they recover the gross overpayment, so you may be better or worse off depending how you have progressed through your band, changes to tax codes and working hours.

Brian they`ve attached a summary of the overpayment to our letters. If I had a scanner i`d scan it and show you cos if anyone can make sense of it I`d be amazed. It`s literally just one line of columns with figures in... thats it!

Originally Posted by simesb

Devil and deep blue sea. You will pay less tax this year as they recover the gross overpayment, so you may be better or worse off depending how you have progressed through your band, changes to tax codes and working hours.

I don`t really know where to start Simon... I would imagine that the Tax Office don`t know anything about this overpayment so I imagine it`ll be down to the individual nurses to notify them and get them to look into it?

Originally Posted by Speedy Claire

I don`t really know where to start Simon... I would imagine that the Tax Office don`t know anything about this overpayment so I imagine it`ll be down to the individual nurses to notify them and get them to look into it?

HMRC don't know squat full stop. With so many staff affected, I'd expect your payroll manager to contact them on behalf of the trust. I'd doubt if HMRC want to know too much about it at the moment anyway...

[Ruffy]

Originally Posted by Speedy Claire

We have paid tax and N.I. on this overpayment so where do we stand with this.

You deserve it back, with statutory interest!

Originally Posted by simesb

Devil and deep blue sea. You will pay less tax this year as they recover the gross overpayment, so you may be better or worse off depending how you have progressed through your band, changes to tax codes and working hours.

PAYE may take care of most of it, but possibly not for previous tax years, especially if the repayment is taken from net pay rather than gross taxable.

Depends how accurate you want to be, but bear in mind the tax man could hunt you further in the event of an error (for up to the following 7 years IIRC). As it's their mistake, perhaps the trust should pay for a tax specialist accountant to review the calculations on your behalf, especially as they have already admitted you would not have realised the error yourself. After all why should you trust this calculation any more than the previous one they made? (A couple of hours each of that sort of support should wipe out most of their expected savings!!!)

You will be due to repay the overpayments but it is a civil matter, they can't deduct any monies from from your salary without your permission, there is a law against that.

Originally Posted by Ruffy

PAYE may take care of most of it, but possibly not for previous tax years, especially if the repayment is taken from net pay rather than gross taxable.

It'll not be 'correct' without getting HMRC involved. There are also state pension implications.

Originally Posted by bris

You will be due to repay the overpayments but it is a civil matter, they can't deduct any monies from from your salary without your permission, there is a law against that.

There is a law against illegal stoppages, and this isn't one.

Is a minefield.... I`m hoping the union will be able to advise us on the tax side of things but again, I`ve got a really impressive list of questions to put to the PCT including them employing a tax specialist accountant!

For me personally this is the second mistake the PCT have made with my pay this year. Several months ago they took nearly £500 out of my monthly salary in one go to cover another overpayment. Apparantly they had me recorded as being off sick for several years?????? They say they had been overpaying me by £15 to £20 a month but there was no mention of sickness benefits on my payslips that covered this period and I wouldn`t have noticed such a small monthly overpayment as my pay varies each month anyway

Originally Posted by simesb

It'll not be 'correct' without getting HMRC involved. There are also state pension implications.



There is a law against illegal stoppages, and this isn't one.

Only if it is written into the contract that they can take back overpayments, has this been established?

Originally Posted by bris

Only if it is written into the contract that they can take back overpayments, has this been established?

I can`t see anything in my contract about overpayments but I`d be extremely surprised if there doesn`t turn out to be some loophole somewhere.