AIBU to ignore previous employer's request to repay overpayment?

[IOnlyHopeItsGoingGoingGone]

I worked for a company last year for 7 weeks. I was only there a short time because they were dreadful and my manager was even worse, so I cut my losses and left before it all started to get to me (which I knew it would, it was only a matter of time). So, I left in May 2023. During this time, I didn't get a full month's payslip, so had no idea what my normal monthly pay was. I was also put on emergency tax, so grossly overtaxed for what I did do. I'd also accrued some travelling expenses, which were due back to me, and took me a lot of chasing and over a month after I left to actually get. So it was all a bit of a mess, and I just wrote it off, put it down to experience and moved on. Anyway, a month ago (so over a year after I'd left) I received an email saying that due to an admin error, I'd been overpaid and that I needed to pay back what was owed as a matter of urgency. This was not a huge amount (around £100). They also insinuated in the email that I may have been aware that I had been overpaid (certainly not the case due to the reasons I mentioned above). They gave me 14 days to pay what I owed. I ignored this email. Now, a month later I've received another email saying that the matter is urgent and if I don't pay up within 14 days they will pass my case to their debt collection agency which may incur additional charges and affect my credit score. Would they really do this for such a paltry amount, when it's their error, over a year since I left the business?? Wouldn't it cost more in legal and admin to try and recover it than its worth? Are they just bluffing and AIBU to continue ignoring this? I don't even know if what they're saying is correct anyway!

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She'll need an adjusted payslip to pay back, or will mess tax etc.

I know it's only £100 but it should be done properly

Can you use the HMRC app to see what you were paid that month. They’ll have the official figures.

Reply back and ask them for evidence, eg those missing payslips. They need to have a proper paper trail to make that claim successfully and sounds like they might not.

Howeever under no circumstances ignore their letters. This could land you in serious trouble and indeed affect your credit score, whether their claim is legitimate or not!

Ask to see their maths! Got it wrong to start with might be wrong again.

For anyone who hasn't read my updates, I sent an email to them last Friday with questions and requesting their calculations, and if I agree with what they say, I will pay the money back. As yet, I have not had a reply or any explanations. I will continue to await their response.

Just pay it back. It’s not your money so you don’t get to keep it.

Debt collectors don't affect your credit score. Going to court and getting a ccj does. Debt collectors just write letters over and over and maybe one day will turn up.
I would ignore it to be honest their problem

I worked in payroll for years. From what I remember if we made mistakes like that, it was our loss, there was no guarantee that you could get the money back, the bank certainly won't help recall it after 1 year. These amounts were usually written off. I don't remember many people ever paying them back. The employer has the legal rights to recover the over payment, and you should repay it though. I remember sending letters to ask for repayments but usually we'd send a statement of their account and some back up. You certainly can't ask anyone for money without that. Those small amounts were normally written off as I said.

You didn't notice the "overpayment" because there had never been a regular payment. In addition, there were other payments due to you (travelling expenses). Emergency tax code compounded the issue. I would write to them and ask for a clear breakdown of payments due to you for the period of employment. Ask them for details of actual payments made to you. If there is a discrepancy, clearly you should repay - ask them for a repayment plan. The more trouble you put them to, the less likely they are to follow through.

P45 when you leave a job, states your earnings and tax paid for the tax year to date.
P60 - end of tax year, again showing earnings etc for the year, should get one from each employer you worked for during the text year.

The P60 is a statement the the employer has made the deductions and paid them to HMRC.

*Tax year

They would apply for a costs order to cover the cost of recovery, wouldn’t they? And they would likely have solicitors on retainer to manage this for them. I would just pay.

The company had a responsibility to ensure they paid you accurately - they did not. As your tax will have messed up by them I think they have made mistake and they need to write it off especially given the other points you mention.

Surely there must be as time limit in a matter like this? One year seems excessive. I would all their actions harassment.

If you based in the UK give ACAS a call and find out where you stand.

Following cos I’m invested now. Update us when they reply

As it's only a hundred pounds, id pay it. But they should have written it off. Their mistake. Chasing an x employee for £100 is embarrassing for them

As others have said, you need to respond and ask for proof, as for a break down of your wage and a detailed payslip… ask for a copy of your timesheet that you submitted with your hours on and managers signature etc..
I would also book an appointment with a citizens advice advisor and ask them for advice on the matter.
As for being on emergency tax, you should have got that back on your future payslips from next job? Or as a tax refund ? Normally they either send a cheque out or change your tax code accordingly so you get it back??

Ah yes.. the other issue is that while they over paid by £100 you also paid emergency tax on that amount…. So you wouldn’t have actually received £100 in your pocket !!
If they want it back they have to deduct the tax you would’ve paid on it!

Ignore it. I had this a few years back and have heard nothing since. They could in theory take you to court, but would cost more in the long run than they'd get back

I’m really disappointed that so many of you would pay them £100 straight away rather than check it out and dispute their error. Do you normally throw away money so easily?

What are you so afraid of?

At my son’s secondary school in Ireland they have a business studies option at Junior level (equivalent to GCSE) and I think it’s a brilliant subject to teach kids as it includes lots of practical financial stuff such as consumer laws, mortgages, compound interest etc.

Do they offer a similar subject in the U.K.? It strikes me that a lot of families would benefit from having some basic consumer and employment legal knowledge.

Emergency tax is not their fault and HMRC should have refunded you by now.

Ask them to provide written details of the overpayment - and if you have been overpaid - pay it.

This isn’t quite right. In almost all UK contracts the employer will put the responsibility on the individual to check their pay is accurate and flag discrepancies to their employer. They’ll usually also include a provision for what will happen in the event of an overpayment.
That said, it’s easy for things to be missed especially when part months / tax changes are taking place.

This is not correct.

P45 when you leave a job.
P60 from your employer at end of a tax year.
If you have been issued a P45 from a previous employer you will not receive a P60 from that same previous employer.