Overpayment by umbrella company - now they want refund 2 years later

[tim123]

You don't owe them the money, your old Ltd company does. If it's closed then you have no money to pay personally - that's what "limited liability" means.

He said that he was paid by an umbrella, so presumably he didn't actually have a company.

tim

[windog]

Yes I did have a Ltd company. The way JSA run it is that they open a Ltd company for you as part of their Umbrella service.

Regarding the other post about a similar problem with JSA/Chorus this was the last post:
>>>>
Thanks for all your advice.
I have since recieved a '... will refer to a debt collection agency..' letter.
I have now asked them for a complete breakdown of the payments/invoices etc. and a full set of company accounts for that period.
I have also mentioned using a firm of 'forensic accountants' to go over the figures.
I dont even know if there is such a thing!!
I have also told them that any costs that I incur I will be looking to JSA to pay.
I haven't had a reply yet!!
>>>>

[daz1701d]

I had a similar problem with JSA in that they thought they had overpaid me and took the money from subsequent payroll runs. When I looked at their figures they had managed to miss a complete week from their paperwork.

When I pointed it out, they said that this was not possible. I calmly talked them through it, and they decided to instigate a full accounts review for the whole of the Chorus company, as they "suddenly" found that they could not reconcile a whole load of payments from agencies.

After 9 months of to-ing and fro-ing, I eventually threatened legal action, and within 10 days I had the payment made back to me.

Now I wouldnt trust them as far as I could throw them.

[McFly]

Similar problem.
I was overpaid (in person, no Ltd company) in March last year when my umbrella company passed on the amount in punds instead of the foreign currency that I earn. I left the umbrella the following month, got an email from them half a year later asking me to pay back the money. I couldn't do that at the time and now I haven't heard from them since August last year. Am I legally obliged to pay them and is there a time fram on this? Thanks

[original PM]

If it was a proper brolly arrangement e.g. you were their employee and there was no faffing about with Limited Comapanies then yes you do have to pay them back any overpayemnt of salary.

However you can legally agree to pay this back at a very minor amount per week (1 or 2p for example!)

It really depends how honest you are and how much you really care about paying them back and clearing your conscience.

[Beefy198]

However you can legally agree to pay this back at a very minor amount per week (1 or 2p for example!)

Not entirely true - you'd have to come to a reasonable arrangement (which would obviously differ in each situation). But if you offered a silly amount and they took it to the small claims court you would end up with egg on your face.

But the rest is correct - if you were paid as an employee the law states you have to give it back.

Lesson: always reconcile what you receive. If you ever get too much put it somewhere like an ISA and be ready to pay it back if they ask for it.