overpaid emergency tax by employer

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binchy

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My son worked started a new job last year and was on emergency tax for a few months as it was a small company and they had just lost their bookkeeper.When the new bookkeeper started he got his tax back.He should have received 2200 back but I just found out he received 6200 back.He says he asked his employer if this was a mistake and they said no so he spent the money.He is a student and only told me today.How will they make him pay this back?
 
If he brought it to the attention of management at the time and they said it wasn’t a mistake they will have to be lenient with him and work out a weekly repayment scheme. I wonder what position the person he reported the overpayment to had in the company - mind you £4000 is a lot of money to repay. He should also get a P21 from revenue and find out exactly how much the company paid on his behalf and check that his tax affairs with revenue are correct.
 
Thank you for your reply.This all happened at beginning of October last year.The person he reported to was a young manager and the payment came in his wages.He is still working 1 day a week with the same company.I only found out as i opened his bank statement by mistake and he had to confess. He has 2 500 left which i have confiscated to have whenever it has to be paid back.Can i order a P21 online? and what info will that give me?Thanks
 
Hello,

Have you seen his final payslip for last year?

You could put up the gross pay, his credits, tax paid , rate bands etc and we could have a look to see if it appears incorrect.

The employer will be issuing a p60 for last year soon, so the payroll may be checked again at that point.

I wouldn’t request a p21 just yet.
 
last pay slip DEC 23 Year to date

PAYE gross 6883.75 7.5 hours 76.34 DEDUCTIONS PAYE 0.00
PAYE 0.00 USC 6.11
USC gross 550.70 PRSI 0.00
PRSI employee 0.00
PRSI employer 326.29
Insurable weeks 33​

Week ending 23 Dec EMPLOYEE DETAILS
PAYE able gross pay 76.34 Calculation basis Cumulative
USC able gross pay 76.34 PAYE credit 63.47
PRSI employer 6.57 PAYE cut off point 664.42
PAYE in previous employment 3090.18
USC in previous employment 3090.18

He hasn`t received his P60 yet. and when we went online on myaccount nothing has been updated so do you think he will have to pay back revenue or his employer?
 
Do you have the p45 details?

Per you note above, he only earned less than 7k in the last 33 weeks ..,

If we could know the p45 details, we would know how much he earned for the entire year..
 
This info is also on his payslip
Calculation basis Cumulative
PAYE credit 63.74
PAYE cut off point 664.42
PRSI classs AO

Payment 7.5 hours 76 34
DEDUCTIONS

PAYE 0.00
USC 6.11
PRSI 0.00
 
Binchy, if your son is over 18, and possibly even if he is not over 18 you shouldn't be opening or reading his mail. It may even be illegal.
 
So in total he has earned about 10k for the entire year based on what you have said.

10k taxed at 20%= 2,000
Less his tax credits= 3,314

Paye should be nil.

I would say though per your note above you said the paye paid in previous employment was 3,090?
Just to be sure are you satisfied that the gross pay in previous employment was 3,090???
 
Last edited:
I think we must be missing something here.

In this job your son earned a total of 7k .. and at some stage 6k was deducted and held as tax and then refunded to him. That is like a 90% tax rate which simply doesn’t add up.. emergency tax would be 40% ( excluding prsi and usc) .. are you sure all the details provided are correct???
 
Once the P60 is given to your son he should get a P21 for last year. If there was an underpayment of tax and based on the figures above it is unlikely. To pay PAYE you would need to earn over 16,500 in the year assuming standard credits. The money would have to be paid back to Revenue and not the employer. Revenue are fair with employees they will not take the money back in a lump sum but reduce his credits for up to 3 years to cover the amount starting in 2020
 
Thanks for all replies. Yes we are sure that his total earning were approx 10 500.His emergency tax was 40% so thats all I expected him to get back.I presume there has been some mistake made by the employers bookkeeper.My main concern was how he would pay it back when asked and am relieved that he will be given time to pay it back.I was just in a panic in case they asked for it in 1 lump sum as neither my son (who works 10 hours a week and is in college)or me (part time worker with 2 more kids)could afford this.I hope he learns his lesson after his carefree spending binge !!!! Will let you know when he receives P60 and P21
 
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