Overpayment of wages - what happens with Tax / NI

[Hollian]

I have been over paid by my employer. I made them aware of this and they have advised that I owe them £1200 gross. I agree with this gross amount, but I don't know what happens to the tax / NI contributions I have paid on this amount? Should my employer take the tax/NI into account when calculating what I owe them?

They should issue you with an amended pay slip which would show the correct tax / NI.

Unfortunately not much of the tax year left to get it sorted out in. I'd recommend doing a self assessment on April 6th with the correct numbers to make sure you're ok. electronic payment means you'll get the money owed back pronto.

I should know the answer to this as it happened to me when I was on Mat leave...all I do remember though is that Payroll worked out how much I'd been overpaid, then I paid it back through my usual monthly pay over 3 months. They must have taken into account tax/NI.

Unfortunately that doesn't this time as its ~1 month to the end of the tax year.

If you get paid > £1200 a month you could just get them to take it out of next months pay. Tax and NI will all work itself out as part of that.

Thanks for your advice. I've contacted my employer and they are going to take all the money owed out of my March wage. It will keep it all in one tax year, but won't have much money this month!
Thanks again - it was helpful to here from others.

Surely the amount of money you have would be the same considering you've been paid more last month?

That is unless you went and spent it ;)