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overpaid

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Leejp03 | 19:08 Wed 06th Dec 2006 | Business & Finance
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I used to work for the NHS in Cornwall. I left my employment in October 2005. I received payment into my bank account in Nov 05, Dec 05 and then �3000 aprox in March 06. I contacted my previous employer by phone to check the large payment was correct which i was assured it was. I was told it was tax refunds and my agenda for change pay award arrears. They told me they would look into the matter and get back to me if there were any problems. I never received any letters or calls.
I received a letter today (Dec 06) informing me that i was overpaid and that i owe them �5700 !!
Where do i stand legally concerning having to pay this money back ??
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Hi Lee,

In England and Wales word of mouth is as legaly binding as a written contract - however in your case it is an statement and proving this would be a pain. Legaly you can challenge this in a cout of law - but then again you might end up paying more for a sol's fee than you would have to pay back.

I would ask them to provide you of proof of overpayment and also ask them why you were informed that it was a tax rebate (misrepresentation of information / incorrect information) and also ask to see your PAYE slips for tax rebates that your emp would have filed, if any. If all else fails arrange a re-payment plan with them - but whatever you do please make sure you put it in writing - otherwise it is their word against yours.

Also on your IR returns for 05/06 you would have declared that �3000 as a tax rebate because that should be tax exempt as far as I am aware so that would support your argument as well.

I would have a word with a legal advisor as well just to prepare for the unforseen!!!

Hope this helps
I seem to remember that if you have reasonable grounds to think that the money was in fact yours (ie you called them and they told you it was) and that you changed your spending pattern accordingly (ie you spent it) then they would find it very difficult to force you to pay it back.
Hopefully someone with a bit more legal knowledge can comment on this...

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