Ex employer over payment

[Harharhar]

I have recently left a job via redundancy, and my final payment is due to be paid tomorrow.

The payment is a combination of two months salary, and a statutory redundancy payment.

My ex employer has been in touch today and said that there has been an error in payroll and they've overpaid me by approximately £2500 and requested that I return the overpayment tomorrow by bank transfer.

Before anyone jumps on me I know I'm not entitled to keep the money BUT I am taking issue with the request to return via bank transfer. I will have been taxed substantially on the salary element of this overpayment, and even if they reduce this to a net amount it will still affect my overall take home pay for the year and any future tax I will pay this tax year.

Where do I stand with this please? Any advice?

Can you ask for a corrected final pay slip showing the corrected tax/ adjustments based on what you should have received. I was told by payroll as long as the error is corrected before the next official pay month they can calculate the true tax. You can then check that against the first one to make sure that figures tally and then send the overpayment back once you have the proper calculations in writing.

@Avidreader12 I have asked for a detailed breakdown of what's been paid and what should have been paid.

However, I have had a P45 issued so I think I would no longer be on payroll for this amount to be amended?

If they have already submitted your p45 to tax office then yes it can’t be corrected. CAB would be able to give advice broadly speaking if you return any monies to the employer make sure you use a reference they can trace to you keep written records of everything make sure you get an acknowledgement. If an employer makes an error with tax and p45 they should still inform HMRC. The tax office if you call them would be able to advise how you go about making sure you get any overpaid tax back and should be able to give more reassurance in your personal circumstances.

Once payment is received they can put a correction to hmrc so you pay the net amount and they get the tax and ni back from hrmc.
They will do a negative pay adjustment

Make it a condition of the return, and ask for confirmation in writing. Do it nett