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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

To not pay back my overpaid wages?

26 replies

MrsAngle · 14/07/2018 23:48

Ok, well obviously I would BU to not pay it back....but...

I work part time, and (I'm going to round up the figures for this post) am paid £750 a month.

Last month my regular wages went into the bank, followed by another payment of £480. My wage slip (erroneously) said my hourly rate had gone up and they paid me over £1300 minus tax/NI
Wages person was away, and on return said it would be sorted out.

Yesterday I got my usual £750 in the bank, then another payment of £185. Apparently they were "supposed" to just pay me the £185, which would add to the extra they paid last month and "make it right".
Now, my employer is expecting me to pay back £750, but I think I should only pay back £185 + £480 (£665).

So, AIBU to not pay them?

OP posts:

Helloflamingogo · 14/07/2018 23:52

You don’t need to pay it all back at once, but you do need to pay it back. What can you afford? Did you spend the money?

Chilver · 14/07/2018 23:52

Whichever amount you pay them, I would pay ir back in installments, not all at once. I had this years and years ago;their error and not picked by either party immediately and they tried to get me to pay back in a lump sum. I refused as a) would have strapped me financially and b) legally didnt have to, so paid them back in installments.

Helloflamingogo · 14/07/2018 23:54

And yes, I’d agree to pay back the overpayments - why does he think you owe him a full months wage when that isnt what you’ve been overpaid?

I’d speak to acas, it’s also worth thinking about if it’s a big or small company (not wrt the full salary or overpayment, I mean the paying back slowly) it could make life difficult.

SD1978 · 14/07/2018 23:55

Does this mean they will pay you nothing for he next few months? We’re you aware of the overpayment, and kept the money to one side, so that it could be returned if necessary? Will they accept a payment plan, or juts sock you wages for a few months? Personally wouldn’t have spent the overpay so that it could be replayed immediately.

HerRoyalNotness · 14/07/2018 23:55

Yes see payroll and explain they’re asking for too much back. It should only be 665 you owe them. They shouldn’t be holding back wages or deducting without your written permission either

Disquieted1 · 14/07/2018 23:56

Of course you need to pay it back. However they can not legally make deductions from your wages without your agreement.
Agree to pay it back over 665 months at £1 per month.

User12879923378 · 14/07/2018 23:56

You pay what's been overpaid. I don't understand why he's asking for more than what was paid to you in error.

Evianliveyoung1 · 15/07/2018 00:01

I’m afraid the above posters may be incorrect. It’s a usual standard clause in employment contracts regarding overpayments and they can be held back or deducted

gekiort · 15/07/2018 00:06

I never understand why people let this happen. Surely you must have known that over £400 was an error? Why not raise it with them immediately, to prevent ending up in this situation?

From what 9 can see you could both be right though. If you were only supposed to receive the £185 the second month, to rectify the error, then the £750 is extra and should be repaid. That however only works if you have slightly variable wages each month. If you are ALWAYS paid £750 then you would have been paid £2165 over the 2 months, take off the £1500 actual wages leaving £665 to repay.

Still, it should have been dealt with last month to stop this.

Move2WY · 15/07/2018 00:07

Yes you are right. Only agree to pay back £665.

Did you keep it aside?

BakedBeans47 · 15/07/2018 00:10

If you’ve been overpaid they can take it back whether you agree or not. I’d engage with them and try and agree a figure and repayment plan

BakedBeans47 · 15/07/2018 00:11

But yeah, I agree with you on the figures

caroldecker · 15/07/2018 00:24

You need to look at the pre-tax figures. You will have paid tax and NI on the extra. Tax will correct itself, but NI will not. You need to tell them to pay the excess NI on your behalf.

WaxOnFeckOff · 15/07/2018 00:29

have they said why your total payment should be less than the usual £750? Did you do less hours or is it to do with tax or NI or something? Otherwise it seems bizarre. i would return the extra £185 paid this month but I would ask them to agree a payment plan for the extra £480 paid last month as you'd spent it in good faith having been told it was due to an increase in your rate and (you presumed) back money. they also didn't then agree with you how this extra was going to be treated/reclaimed so it's unfair to expect you to pay it back immediately.

Original poster

MrsAngle · 15/07/2018 01:26

Someone cocked up. They increased my hourly rate by quite a large amount. No overtime, just a mistake somewhere.

I have the extra to one side. I've not spent it. Repayment is not, in itself an issue, however..
I've paid tax/Ni on the first month, about £85, which is why the two overpayments total £665.
Like everyone else, I've got bills to pay etc, and can't afford to lose the £85 which is why I only want to pay them the two extra payments back.
I did notice immediately, however wages person went on holiday (small firm). I am happy to pay back the two extra payments. My issue is that the company accountants have said I should pay the full amount, plus tax back to the company, which leaves me £85 worse off.

OP posts:

seven201 · 15/07/2018 09:09

Gosh that's mean that want more because of tax. I'd stand firm and say no you will pay the £665. Or would you get a tax rebate in April?

FASH84 · 15/07/2018 09:15

You need to pay back the overpayment, you know it's an overpayment so shouldn't have touched any of it, so you shouldn't need time to pay it back, speak to payroll and pay back the £665

FabulouslyGlamorousFerret · 15/07/2018 09:43

Have you read any of the thread Fash?

gekiort · 15/07/2018 09:49

FASH

The question isn't should it be repaid, it is HOW MUCH should be repaid.

WeirdAndPissedOff · 15/07/2018 09:54

The tax bit doesn't make any sense to me.
You should pay back the extra you received in your net pay. (£665, assuming your net pay is always £750 and there's no other reason for it being lower).
The tax and NI was deducted from you last month, and if anything you may get a slight tax refund this month - though it should work out overall that you get your usual net pay less £665.

Is it to do with employer's NI, perhaps?
They need to calculate your pay so that they get it back from HMRC, in effect, and not you, as it's HMRC who received the extra tax.

And as far as them deducting the wages straight from your net pay, they are completely within their right to do that - although a reasonable employer may allow you to pay it back in installments.

AtSea1979 · 15/07/2018 10:02

So did you get a pay rise or not? If you normally receive £750 then what was the pay rise to? You should repay £665 minus what you should have actually got as your raise.

Original poster

MrsAngle · 15/07/2018 11:49

I do want to pay back the 2 extra payments. It's sat in my bank account. Not a problem. (As much as I would of liked to, I've not gone out and treated myself to a designer handbag)

I didn't get any sort of pay rise or do any overtime. The lady who does the wages here is blaming the company they send the figures to, for paying me incorrectly.

Under normal circumstances I don't pay tax on my wages. And, while it's not a big amount to most people £85 is a weeks shopping for me, and I can't afford to lose that. IF I suddenly get a tax rebate months down the line and they give me an extra £85 then, I can pay work back, but until then, I need my full wage.

OP posts:

agedknees · 15/07/2018 12:05

You should only pay back £665. Their mistake so they need to claim back tax and NI themselves.

Kewcumber · 15/07/2018 18:18

Did they put the extra payments through your payslip, deducting tax and NI?

Because if so you won;t know what you should pay them back (or they should withold) until they've run a payslip with the correct amount.

They should run a payslip for July for your normal £750 minus the GROSS amount they overpaid you then calculate the tax and NI and pay you the net amount left for July and if it's negative then you can agree to pay that back.

I would not pay anything until they rerun (or correct your payslip properly)

MrsMozart · 15/07/2018 18:31

Just the extras.

Their mistake, not yours. Theirs to fix regarding the tax etc.

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