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Where Taxpayers and Advisers Meet

Previous employer overpaid me, does this affect my tax allowance?

Snooze
Posts:1
Joined:Wed Jul 26, 2017 5:57 pm
Previous employer overpaid me, does this affect my tax allowance?

Postby Snooze » Wed Jul 26, 2017 6:05 pm

Hello,

I have searched around for an answer to my question but no joy - hope someone here can help.

I finished working for my last employer in March this year and have not had a job since. However, I recently received a payment from them in error. I have contacted them and will of course repay the money, but I am unsure if this will have an impact my tax.

I have read that overpayments are usually resolved through deductions from future wages - this doesn't apply here so I'm pretty confused!

Will HMRC think I have earned more than I have, meaning I lose out on the personal tax allowance? Is there anything else to watch out for?

Thanks in advance for any advice,
Ben

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: Previous employer overpaid me, does this affect my tax allowance?

Postby robbob » Wed Jul 26, 2017 7:19 pm

simply get them (ex employer) to confirm that this amount has not been treated as taxable income - or if it has been originally - get them to confirm that the incorrect treatment has been reversed back out so the situation now reflects the position that you had no taxable income - cant see any reason why they would do this when they are in possession of their dosh back - any similar wording should do - just keep your proof that money was handed back to them for hmrc - probably best done by bank transfer.


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