Overpayment and tax

[Madamecastafiore]

Am confused.

It has been explained to me but I still don't understand it.

I have been overpaid to tune of nearly 2.5k over a considerable period of time.

They are saying gross figure of say 2.5k which equates to 1.5k net.

Why am I then having to pay the higher figure back? Effectively I am having to pay tax back that I paid out?

This is an explanation from an NHS employer. Does that help?

Are they deducting the gross overpayment from your gross salary? The idea being that the tax situation will then right itself as you will not pay tax and NI on your total salary, only on the bit after the overpayment has been deducted if that makes sense?

How are you paying it back?

Oh right. Yes on gross salary. My stupid fault for not understanding this stuff and not checking wages. Was incensed for a moment thinking why am I paying the nhs tax back?

Thank you guys.

Ooooh how did you know I worked got the nhs?

Why won't they let me just write then a cheque too. Would make life a lot bloody easier but apparently this can't be done!

I'm clever like that Not really...it's generally the NHS that muck this stuff up. My whole department got an accidental payrise once - I phoned and had to convince them that they'd got it wrong .

If you just write a cheque, they'd have to work out the Net overpayment and they'd have to show it through the payroll because otherwise your P60 would be 'out'.

If they take it from your gross salary, as Flowery says, then the tax will sort itself out.

Ha ha louge too right crap system where they contract it out to an external agency who are diabolical.

Will I owe the tax man though if I insist paying the net amount back by cheque?

Would be easier as am going on maternity leave soon.

Have read your link and don't understand the tables but hey ho!

Could I insist on paying back the net amount in one go or are they within their rights to say no?

I think you can ask for an overpayment statement and then pay it back in one lump sum. It's not unheard of, just unusual because people often haven't realised they are overpaid and don't have the money to hand.

Super thank you. Just easier to do this than to have amount that goes in each month to change.