Overpayment

[Ostagazuzulum]

Work have overpaid me. Two years ago for one month. My pay is variable and can be complicated with enhancements and unsocial hours so I didn't notice. It wasn't enough that I'd wonder where the extra money came from....when I get overtime the dates for submission can be random so it's hard to keep track of when it's paid so it's easily
Done to miss an overpayment.

They've done an audit and realises I owed £150 from a month a couple of years ago.

They want it paid back next month. I said no as it's too much to be deficit in my pay in one go. They came back and suggested I pay it over two months. That's still a lot for me to lose (no onetime in the last year so am on basic salary) in one go. Especially with school
Hols and childcare costs over 6 weeks.

Obviously I know the money isn't mine but what is a fair way to pay it. I've suggested £20 a month as I wouldn't notice that. Is that reasonable?

Payroll have admitted this is their clerical error.

Yes it's reasonable

Honestly, it was two years ago, and it's £150. It was their mistake, and they should shoulder the cost of the error. Can you gently suggest this to them?

Yes that's a reasonable offer. Actually I think you could argue you spent it in good faith and don't need to return it.

https://www.personneltoday.com/hr/weekly-dilemma-overpayments/

make Sure the it’s now net not gross as it fallen in a previous tax year and you only have to pay back the net. Ask them for the workings out before you pay any money back. I was show them my figures. I used to use Q-Tax.

I do collections like this in my role and would accept £20pm on £50

what complicates it is that your repayments will fall in 2 tax years so a further adjustment has to be sent to HMRC once it is repaid in full.

On £150 I mean

I was overpayed a months wages and paid it back at £20 a month.

8 months at £20 pcm could surely all be done in this tax year? July- Feb inclusively.

Thanks all, this was really interesting to see your replies. It never occurred to me I could keep it. I honestly don't think my organisation would accept i might be entitled to keep it (emergency services personnel).

you can’t keep it regardless of the length of time, unless the business allows it and they don’t always do this. The company I work for used to write of old debts if the budget holder would take the hit but it’s impossible now (it’s public money). We always chase money back and if you leave it’s taken back in full in the last wage or a plan made up to pay back and if you don’t they do take it to legal

Thanks. I wasn't going to suggest to keep it as I know the outcome.

Speaking to a colleague last night, two other colleagues were overpaid by £1000 each over course of 18 months where they'd been given more overtime and unsocial hours each month by accident. Payrolls fault. It was few years before they did audit and realised. Without going into how we're paid it's honestly east to miss because how chaotic dates are for overtime. Not many people scrutinise their payslip aa it's so chaotic to underarms. They had to pay it back in big sums over short period.

It shouldn't be allowed to happen. Paying back £1000 would cripple me right now.

I’ve done repayments with people and that sounds reasonable. It’s their error as well.
I had someone payback over 2 years.

thing is, if you’d left they probably wouldn’t have even pursued it.

@Clementineorsatsuma my brain had us later on in the year 😂 wishing the summer away

@Ostagazuzulum as pp have said ask for them to confirm the figures e.g. gross, net and ask how they propose to adjust tax and NI etc. which you will have overpaid.

Offering to pay £20 a month over 8 months is a little low I.e. £5 per week, but I would offer that as a starting point. £30 a week means it’s paid back in 5 months, £40 is £10 per week. Do not go higher than that.

I would point out that they took 2 years to find the overpayment so asking for repayments to be spread over 5-8 months is not unreasonable. A key date is to repay before the end of the tax year.

Whilst you are negotiating this start to put the money to one side e.g. £5 a week in an envelope. That way you will have some saved to even out the deductions.

Thank you. The last offer I had was £80 a month for two months. I've said I think it would be too noticeable in lead up to summer holidays when childcare costs rise and things get a little more expensive with kids not being at school.
They've ignored me. Can they just take the money from me regardless? Without an agreement ?

Technically they can just take it out your wages but it’s bad practice to do that.
send an email cc hr and state that it will cause you financial hardship. You’re not refusing to pay and have made a reasonable offer.

This happens in my workplace now and again. If it’s Payrolls error you still need to pay it back. Not least because it’s still your responsibility to be aware of and report an overpayment error. We would discuss and try to agree a repayment plan that recouped the money as soon as possible. If someone refused to engage with a repayment plan and then, say, left to try and avoid it, we would chase and take it to court if we had to. (In our case it’s public money as it’s the public sector).

@Ostagazuzulum Put in writing that you do not agree to the £80 as it would cause you financial hardship and it is unreasonable that it took them so long to notify you. If they do deduct £80 you could raise a grievance. However, by the time that was heard they would have taken the money.

I would consider adding an offer £40 a month I.e. 4 months to repay. Point out this is the maximum you can afford and that they are being unreasonable to demand repayment in 2 months when it took them 24 months to notify you.

Also add in you expect them to refund tax and NI you overpaid. Ideally they take it from gross pay as you will lose less than £80 as you will pay less tax and NI.

They've rejected my offer of repaying it over 6 months.

They said the longest repayment term would be the two months my next two payslips

It says £80 will be credited to my payslip to offset the overpayment then I have to pay £49 in July and august respectively as repayment.

That reads as though they're only making me pay half back. That can't be right surely?

Have they made an adjustment for the tax and Ni paid already on your original overpayment?

@Ostagazuzulum it sounds like the gross overpayment is £150 and they are recovering £80 from your gross pay this month and £70 next. This way you get back the pay, NI and pension you paid on the £150 when it was originally paid. It’s not exact, but £49 loss of net pay sounds about right.

@Ostagazuzulum actually what they may be doing is taking the whole £150 back but paying an advance of £80 so you only repay £70. Then next month they recover the £80 advance. Really complicated way to do it.

They've ignored my query about tax and national insurance.

My organisation aren't exactly well know for staff support and welfare

@Ostagazuzulum ask again about tax and NI, but as I explained they are adjusting for this by taking back the gross overpayment.