Incorrect Pay

It has recently come to my attention that I was incorrectly paid in the years 2002 and 2003. The company in question has agreed to pay me the arrears as it was not my fault but an error on their part. The sums in question were approx. €3500 per year (ie.€7000 in total). I got a cheque that taxed these amounts at 41%, even though in first year, my salary didnt even reach this tax bracket (I havent cashed this cheque yet). They have not issued me with any revised P60's for those years or updated my pension to reflect this underpayment and are refusing to do so as they say that they no longer have me on their system. Am I entitled to these? What are my rights? I have no idea. Also, a friend suggested that I should have asked for interest on the amount due. I reckon its too late now in any case.

If you paid too much tax in 2003 then you can still request a P21 balancing statement from Revenue to get a refund. For 2002 it's too late though I'm afraid due to the 4 year cut-off period.

I'm not sure what your rights are with respect to the back payments, pension and updated P60s but perhaps the DETE Employment Rights section can advise?

Surely you're entitled to the net amounts inflation adjusted at the very least? That's what I'd ask for.

Contact the Revenue too to explain your situation.

Technically, employment income is taxed on an earned basis and so these payments relate to 2002 and 2003. As you will have underpaid tax for 2002, they may be willing to extend the 4 year period normally applying to a taxpayer amending their tax affairs.

Nige said:

they may be willing to extend the 4 year period normally applying to a taxpayer amending their tax affairs.

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I doubt it but no harm in asking.

Thanks for comments. The company was contacted about this underpayment in November 2006 and I only received cheque in May 2007. I messed this one up I know. Instead of trying to do this on my own I should have contacted solicitor immediately. Hindsight.

Personally I wouldn't even go down that route...I'd say to the employer "look, you guys botched my salary...rather than having to mess around with Revenue etc just pay me the net amount I would have received then," i.e they sort out the tax so it doesn't affect you.

I tried but they wont entertain that. They said I am no longer on their system and so there is nothing they can do. Basically they have refused to give me P60 and pension details. They want nothing else to do with it. They taxed me at 41% too which indicates I am down as being employed this year. Surely this is wrong?

marsplastic said:

I tried but they wont entertain that. They said I am no longer on their system and so there is nothing they can do. Basically they have refused to give me P60 and pension details. They want nothing else to do with it. They taxed me at 41% too which indicates I am down as being employed this year. Surely this is wrong?

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I think at this stage you do need to see a solicitor. Contact the DETE first as ClubMan suggested.