Dave,

Would think that it would be terms agreeable by both parties - the company (assuming they're nice!) should be okay with this as it was their **** up anyway

 

She will DEFINATELY have to pay it back. If she had been aware that she was being overpaid and didn't report it then that would have been a very bad thing and if she were in our company I'd be going mental.

However, as both the company and your wife were both ignorant of the error then it seems only fair to pay it back over a few months.

If she has been significantly overpaid (>£5k) then technically it would be classed as an interest free loan and she will be liable for the tax on the interest

Hope she has spent the overpayments!!
Taff

 

Heres one for you..

My other half has been overpayed since she started her job 5 months ago. She didnt realise and they have only just picked up on it.

She will obviously have to pay it back, but where does she stand legally ? Does she have to pay it back in one go, is it at terms agreeable between both parties, or what ???

Dave

 

yep - she has to pay it back

happened to me recently, i left a job and they overpaid the final cheque. It was a substantial amount, so I got some advice to see where i stood However - it basically comes down to the fact that its their cash, not yours.

very disappointing...

 

I dont see why she should have it classed as an interest free loan, technically it wasn't asked for and if the company's financial people can't do their job properly then I see no reason why she should be "punished" for their mistake!

 

This has happened to me.

I had to pay it back, but agreed the time span.

If she has been over paid over six months then pay back over six months.

Did not have a problem with this.

I think if you look at the rules and regs as far as the Inland Rev. are concerned they will consider it an iterest free loan and apply tax on the amount.

But who will know provided at the year end all is clear.

All the best,

John Catlin

 

Have had legal advice on this in the past (as an employer.) She has to pay the money back, but she gets to decide the terms. If she wants to pay a fiver a week she can do so. The only way the company can force her to pay any more is to take her to court. Obviously not a good situation for career progression, but if she can justify what she feels is reasonable then she should have no problem.
(If her contract states, 'you will be paid 12000.00 in 12 monthly installments' then they are legally obliged to pay her a gross of 1000.00 per month unless she gives her consent in writing, so they cannot just 'take it' all at once

 

..I said technically a benefit in kind if >5k - this is per the IR not per the company.

However what the IR doesn't know can't hurt it (apparently)

 

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:<HR>Originally posted by fast bloke:
<B>Have had legal advice on this in the past (as an employer.) She has to pay the money back, but she gets to decide the terms. If she wants to pay a fiver a week she can do so. The only way the company can force her to pay any more is to take her to court. Obviously not a good situation for career progression, but if she can justify what she feels is reasonable then she should have no problem.
(If her contract states, 'you will be paid 12000.00 in 12 monthly installments' then they are legally obliged to pay her a gross of 1000.00 per month unless she gives her consent in writing, so they cannot just 'take it' all at once [/quote]


Cheers FB, thats really helpful.

Dave

 

see the dti website for the laws