Overpaid via work, Paying back what happens about the Tax?

[just_jue]

Hi,

 

My OH has been informed that for 11 months now she has been overpaid via her work, coming to about £1200.

 

She has been working extra days to pay back the overpayment but was wondering what happens to the extra Tax that she paid on this amount, and if she can claim it back how she goes about doing this?

 

Thanks

 

JJ

[martin2006]

Im no expert on paye etc but at a guess i would expect that she can claim back any overpayment of tax via HMRC at the end of the tax year.

 

Others with better knowledge will further advise

[just_jue]

Thank you Martin, that was what I was thinking.

[martin2006]

If its been over 11 months then it would have been during the last tax year i presume which ended april so might be worth checking yr OH P60 and maybe give HMRC a call

[just_jue]

Will do.

[Jedicris]

Hi,

I don't think that this is as simple as it sounds.

 

The figures on the P60 will probably match, i.e. the tax paid will equal what was due on the wages paid. Therefore NO refund of tax.

 

The extra days you are working, are you being paid for them or not?

 

Ideally, the pay back should be made through deduction from your wages, this would then reduce your tax liability, resulting in you paying less tax and therefore you will get back the extra tax you paid and also prove that you have paid back the overpayment.

 

It is not a good idea to work the extra days for nothing.

[just_jue]

Hi,

I don't think that this is as simple as it sounds.

 

The figures on the P60 will probably match, i.e. the tax paid will equal what was due on the wages paid. Therefore NO refund of tax.

 

The extra days you are working, are you being paid for them or not?

 

Ideally, the pay back should be made through deduction from your wages, this would then reduce your tax liability, resulting in you paying less tax and therefore you will get back the extra tax you paid and also prove that you have paid back the overpayment.

 

It is not a good idea to work the extra days for nothing.

 

Thank you for the input.

 

It is a confusing one. What happened was my OH went down to 4 days working from 5.Just to confuse things more my wife gets 3 different pay scales for the different parts of her job she does.

They carried on paying her for 5 days until they realised their mistake.

My wife has been working the extra day since and this has been 'credited' to the amount she owes.

So that was why I was asking about the extra tax she paid, and if she could claim it back.

 

Thanks

 

JJ

[Jedicris]

Hi,

 

From what you say, I don't think it is possible to claim the tax back. As far as the tax office is concerned, OH has earned £xxxx.xx and has paid tax on £xxxx.xx.

 

The only way I can see for OH to get tax back is to have had the overpayment deducted from wages before Tax and NI.

The lower wages would have resulted in less tax being paid and this would have resulted in the reclaiming of the tax.

The drawback with this of course is that OH takes home less pay.

 

Unfortunately, I can't see a way round this.