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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 78228
Experience:  Qualified Solicitor
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My previous employer and I parted company on 6th April. We

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My previous employer and I parted company on 6th April. We agreed that I would be paid in lieu of 3 months noticeI was paid this money at the end of April. The wage slip and P45 was provided.As this money totalled around 17K I used it to pay do some home improvementsToday I have received a letter from a firm of Solicitors acting for my previous employer and their accountants"Payment was made to you on 29th April. However due to a software error ,the required tax and NI , due to HMRC was not deducted. This has led to an overpayment to you of £7128.92"It also states that the accountants had tried to contact me on multiple occasions. I can confirm I have received no emails or phone callsThe claim is restituitiory claim against me for unjust enrichment. They also quote Sempra Metals Ltd vs HRRC and state that interest is now payable but will be waived if I pay within 7 days.My question is that If the. software has not deducted TAX and NI then presumably the company has not paid the Inland Revenue for that amount.I presume that when my Tax code is calculated by HMRC then this shortfall will be noted and used in my Tax code calculation for next year.If I pay them this money How do I know that this will be forwarded on to HMRCAs I no longer have this money then am I able to repay a small amount each month.Kind RegardsSteve Clarke
JA: Where are you? It matters because laws vary by location.
Customer: I am in the UK
JA: What steps have you taken so far?
Customer: Huddersfield
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: no not at all
Hello, I’m Ben, a solicitor, and it’s my pleasure to assist you. I may ask for some preliminary information to help me determine the legal position.

Have you contacted HMRC about this? I also wanted to make you aware that this is not always an instant service, due to various legal engagements I could have and I may not be able to reply immediately. However, rest assured that I am dealing with your query and will get back to you as soon as I can. Thanks.

Ben Jones and other Law Specialists are ready to help you
Customer: replied 12 days ago.
NO I have not contacted HMRC about this as I ve just opened the letter this evening

Thank you very much for clarifying. I cannot say for certain whether the employer has paid your tax and NI which they thought you would have to pay for receiving this payment. Sio the first thing you need to do is check with them whether this happened, or if the amount they are asking you to repay is the amount they will then use to settle your tax obligations under PAYE.

If they did not pay the amount to HMRC, you can contact HMRC to see if this will e resolved t the end of the tax year, considering what you actually were paid by the employer, or if you would need to submit a self-assessment to ensure this amount is declared and taken into account for your tax position.

If the employer did pay your taxes and are now out of pocket, then you should be repaying them. However, as it was their fault that you ended up with a request for such a lump sum payment, you should ask to be allowed to repay it over time, considering what you can actually afford.