Help - employer has been overpaying me for 2 years!

[ladylush]

Rang payroll dept to find out when I'll be paid and how much (following return to work from mat leave) and was informed that they've been overpaying me since I changed department in 2008!! So apparently I owe about 2k At a time I can least afford additional outgoings (returning to part-time pay), I am wondering what rights I have in terms of negotiations re how much I pay back each month. I work for the NHS.

Phone Citizens advice... My sister in law was in a similar situation she works in civil service and ended up paying more than she should have because she didnt wait for citizens advice to phone her back..

Please phone them before you do anything...

Are you in a Union? Ask for their help and support.

Get a written statement from your employer of the amounts and reason for the alleged overpayment. Whose fault was it? or was it just an admin error by accident.

Thank you both. I tried CAB but line constantly engaged. Will keep trying. The overpayment goes back two years and is because they continued to pay me higher cost allowance after I moved to another part of London. I didn't notice because my pay was changing due to loss of other allowances such as unsocial hours, enhanced hours etc. All I was interested in was the figure at the bottom of the payslip. Am hoping they will let me pay it back over 2 years. I think this is reasonable given that they overpaid me for that length of time.

When I was overpaid for 6 months in the NHS, I was told by our payroll dept that it was considered equitable to pay the sum back over the same length of time as I had been overpaid for; so in your case, that would be over the next 2 years.

That fits nicely with what you are suggesting...

Yes, that's what I thought. The problem is that I'll be going back on a part-time wage (earning a third less) so it will hit me harder than it would have if I'd been planning to return to my f/t post.

When/if you do pay it back, make sure they take into consideration that you have paid tax and NI on the additional money.

You won't have received the full £2k, so I'm not sure if you should have to pay the whole lot back iyswim. You could ask them to reduce your salary by £2k, rather than them deducting it from your net pay.

It might be worth talking to your local tax office, they should be able to help with regard to the tax and NI.

Netbook - much as I'd love to not have to pay it back, I don't think there is any question that I won't repay the money. I did wonder about the tax and NI and your suggestion is a good one. I'll speak to my employer about it.

Don't get your salary reduced...it effects pension contributions, redundancy pay etc etc.

Oh blimey - I think I'll just have to find out about reclaiming the tax I paid on the extra earnings.

good point Indaba, forgot about pension.

If payroll deduct the repayments on the OP bEFORE tax calculations, that should correct the tax question.

Any luck with Citizens advice?

Couldn't get through - constantly engaged. Will try again next week.
Lucinda - what did you mean by OP?

Overpayment = OP

if you go onto their website sometimes your local citizens advice can be contacted by email.. Usually quicker than trying to get them on the phone..

I'm a teacher and was overpaid for 7 months, I didn't notice because it was my first full time job and it looked about right. I too had been overpaid by about £2000. I tell you this because since we both work in the public sector similar rules usually apply.

I was told by the head that the usual custom was to pay back over the same period it was paid to me. I did the maths quickly in my head and quickly concluded that if they did that I wouldn't be able to pay my rent. I made a big deal about my personal situation (at the time I had recently relocated after finishing uni and starting work and was supporting myself and my partner while being more than 200miles from any relative) and declared that they couldn't get blood from a stone. The reluctantly agreed to allow me to pay it off over 12 months instead.

So, lesson is: complaining can get you at least another 5 months to pay it back over!

And good luck with the tax office, they're never best please when you tell them they owe YOU money!

Thanks Lucinda
Thanks also Catherine I need to see what I will be earning when part-time before I can assess whether I can repay it at the rate paid to me iyswim.
Mum - no email for my local CAB. Will try ringing again on Tues or go there on Thurs when ds back at school.
Thanks everyone for your help