Advice for overpayment

[Chazette]

Ive been over paid �388 by my work. I notified them and theyre asking for it back. I understand that by law i have to, but because of the extra money ive been taxed 20% on that full amount and so only have �291 of that original amount (i worked out how much i really earned and deducted tax...took that from my pay slip and this is the remainder). My employers are refusing to sort out the tax side of things and so im going to have to find the extra �100 out of MY money to pay for their error.

This effectivly leaves me with �80 to get through a month (i only earned �180 this month)

Is this allowed or can i fight to only pay what i have and not the full amount?

[buildersmate]

No that's complete tripe.
When the employer takes the money back, they merely have to take it back through their payroll system (by showing it as a negative salary payment) - and I'm surprised they aren't wanting to do that anyway.
If they do it that way, it appears to all intents and purposes to be a reduction in the amount of pay you receive, and the tax will automatically be corrected under the PAYE system the employer operates.

[factor-fiction]

Yes, buidersmate is right. If �388 was the gross amount you were overpaid your gross pay should simply be reduced by �388 next month. That will mean you will pay less tax and NI next month as your earnings are lower than usual. So in effect your net pay will be �291 less than usual (assuming your figure is correct).

[Chazette]

unfortunatly my pay doesnt come up to this amount ( i only ever earn �150 a month + overtime)

So im not getting taxed because im not getting paid at all?

[factor-fiction]

The tax will be sorted out automatically through PAYE. If you get no pay for 3 months you'll pay no tax and then when you start to get paid again your tax will be lowered until things straighten up

Is your employer proposing that you get no pay for the next 2-3 months? I suggest you ask them to phase the deductions over a period . When did the overpayment occur- if it was last month you should have money to repay it quickly. If it was a while ago then ask to repay it over 6-12 months. Sounds fair if it was their mistake.

[Chazette]

It was wednesday and i told them straight away because i knew id have to pay it back. No theyre proposing i pay them �388 by check by the end of next week, which like i said before, i dont have cos of all the tax.

When i explain this, they dont want to know and just say pay it. I don't have a check book anyway so this method is impossible and i suggested they took �50 a month off me so i dont feel it over the next few months and again she says thats impossible.

I'm a student and work 4 jobs so this is why i get taxed everywhere, its just annoying now. I just dont know what to do about all of this, we just seem to be going around in circles.

[Chazette]

im willing to give them the �300 i have but i cant pay them the rest because i have to pay my rent and bills and everything!

[gentleman]

This is quite simple. You know you have been over paid by a certain amount of a usual salary. You also know the tax has been deducted on the sum over paid.
Now the Employer has no right to claim the money unless they provide you with the correct amount and the correct payslip in a formal exchange of letters so you and your Employer will end in status quo. That said your employer would not have paid the tax man their due in this event for the fact returns are made from 31 September this year or latest 31 January 2010. So stand up to them and say you know the drill.