Overpayment & Tax/N.I.

[Harrison04]

I have received an offer of a repayment plan for an overpayment of £14K over 20 months (jul 07 - mar 09).

 

The offer states:

 

1 - gross overpayment amount

2 - gross overpayment amount written off by company

3 - gross overpayment amount outstanding

4 - gross monthly payment to be made for 24 months to repay the outstanding amount.

 

I contacted my employer and asked them if they would clarify the position in terms of Tax & N.I. as I believe (from CAG advice) that I am only liable to pay back the net amount. The employer has given me the following advice and I'm seeking clarification of this advice from other CAGGERS

 

'All overpayments and subsequent repayments have to be made a gross amounts as per HMRC guidelines. As we will be deducting the gross amount from your salary, you will receive tax and N.I. relief on the monthly deduction. e.g. if we were to take the proposed amount of £260 per month, you would benefit from tax & N.I. relief of around 29.4% each month'

 

Your advice would be gratefully received.

[The GodMother]

Not a area i can help what has ur sol said about this?

[Vindicated]

Hi Harrison, just about to update my post for help and thought id check by to see how you were getting on

 

From what i read, the company are going to give you a rebate of 24% odds, is that correct? Or are they refusing to do this?

[Harrison04]

The 24% thing relates to how they are going to make sure that i don't pay tax & N.I. on the repayments. The good news is that the company agreed to wipe off 12 months of the overpayment (about £8K) leaving me with the remaining 8 months to repay (about £6K). However, the bad news is that i might be redundant when i go back to work, I'm currently off sick with stress!! However, this might be good news if the redundancy package is right as i don't really want to commute 3 hours to and from work every day for a company that has treated me the way it has!

 

How are you getting on with your case?

[Harrison04]

bump - I would really appreciate some advice about whether the companys reponse re the tax / N.I. position is the kind of response i should have been expecting as i think its very vague

[Vindicated]

Hmmm, sounds a bit strange; but id try and see what they offer you in terms of a redundancy package.

 

Case is okish atm, obviously my employer is denying any wrongdoing, so off to court, just need to file the papers; going to see my lawyer 2moz so wish me luck >_

[Harrison04]

Good luck Vindicated, let us know how you get on!!