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Where Taxpayers and Advisers Meet

Employer mistake on P11d

Joined:Tue Jul 12, 2022 4:29 pm
Employer mistake on P11d

Postby Crk » Tue Jul 12, 2022 4:33 pm

Hi, my employer has made a mistake calculating my BIK in relation to private medical insurance for the previous tax year. They have just notified me and informed me they will be deducting the shortfall from my salary at the end of the month.

Question is, are they entitled to do this? It was their mistake. They have simply given me a figure they will be deducting rather than any precise figures or detailed explanation.

Any advice would be appreciated.

Joined:Sat Feb 01, 2014 3:26 pm

Re: Employer mistake on P11d

Postby bd6759 » Wed Jul 13, 2022 10:06 am

Ask them for their calculation.

If it’s too much to deduct on one pay day, ask them to spread the recovery over a number of pay days.

Joined:Thu Mar 09, 2023 6:10 pm

Re: Employer mistake on P11d

Postby RoryDickerson » Sat Mar 11, 2023 9:17 pm

If your employer made a mistake in calculating your BIK (benefit in kind) for private medical insurance, they are generally entitled to correct the mistake and recoup any shortfall from you. However, the manner in which they do so should be fair and transparent.

Your employer should provide you with a detailed explanation of the mistake, including the precise figures involved and how they arrived at the amount they are deducting from your salary. This information should help you understand why the mistake occurred and how the correction was calculated.

Additionally, your employer should give you reasonable notice before making any deductions from your salary. Ideally, they should discuss the matter with you in advance and agree on a repayment schedule that is fair and reasonable.

If you are concerned that your employer is not following fair and transparent procedures, you can raise the issue with them directly or seek advice from an employment law specialist or your union representative.

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