Tax considerations when overpaid in new job

Mimi gogo

Registered User
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Hi, this is a tax related query.

I recently changed jobs in June mid month. I have done locum evening shifts before for my new employer in the past hence it was treated as a second job by revenue & as result all payment from them was subject to tax @40% & 8% USC.

I was not due to be paid in June by my new employer since I joined at the end of June however payroll accidently paid me a month in advance. This payment as result was subject to only the high 40% & 8% USC as I had not yet received my p45 from my past employer or new tax certificate & as result Over 50% of this money went on tax.

My tax credits have since been updated however my employer wants to recoup the entire amount in this month's (July) payroll. I have tried explaining it to them I did not receive the money due to the tax rates & that I was willing to pay back all the money however spread over 2 months payslips. I have explained I will not be able to pay my mortgage let alone eat if they recoup all the funds in one go.

However they are a private company & my contract says they can make deductions from my pay. They are unwilling to cooperate. They said I need to contact revenue to recoup the tax paid however should they not do this? I rang revenue & they said it was between me & my employer.

I have also asked for a calculation for what my corrected salary should have been for a few days worth of work end of June & the extra error money to be charged at my correct rate for July (as they are treating it as a prepayment) & tax already paid taken into account reducing July's tax due?

They simply want to recoup the gross monthly wage paid (€4k) in error asap however with no consideration that I only received less than 50% of it.

Any advice? Is there anyway my tax rates or credits be adjusted to take into account the tax paid in error or adjust this month's rates accordingly?

Cheers.
 
If your tax credits and standard rate cut off have been allocated to your new employer on a cumulative basis then effectively you have no gross pay for July but you do have the €2k they over paid you in June.

You will also get the benefit of the July tax credits approx €275 and the July standard rate cut off approx €580 so despite the fact that you have zero gross pay you should get €855 plus the €2,000 so you should be able to eat.
 
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