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

[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.

[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.

[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

[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.

[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!!
>>>>

[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

[BrilloPad]

JSA - Chorus Management
Just found another thread on here from last Oct where they have tried exactly the same thing

what was the outcome?

[windog]

JSA - Chorus Management
Just found another thread on here from last Oct where they have tried exactly the same thing

[Money Money Money]

Thanks the advice guys.

Gave them a call to check on the status of my old limited company and they confirmed it was closed in 2005.

I asked was there any amounts outstinding regarding the Ltd company and they said no.

Seems about right the way they operate there - nobody ever knew what was going on and their turn over of staff was frightening.

I'll see what they send me next...

Who was it?

[windog]

Thanks the advice guys.

Gave them a call to check on the status of my old limited company and they confirmed it was closed in 2005.

I asked was there any amounts outstinding regarding the Ltd company and they said no.

Seems about right the way they operate there - nobody ever knew what was going on and their turn over of staff was frightening.

I'll see what they send me next...

[pisces]

I wonder if they would notify you if they underpaid you?

[Sockpuppet]

http://wck2.companieshouse.gov.uk/60...essCompanyInfo

[Bluebird]

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.

I agree, but you need to check the status of the 'old company' - you can do this at companies house - it's probably free.

[Cowboy Bob]

Hi all
I worked as a IT contractor in 2005 and used an umbrella company to take care of all my VAT/LTD. company details etc as I knew very little about that side of things.
When my contract ended I was paid my final 'salary' twice over 3 different months.
Because the umbrella company were so totally unorganised and inefficient there was nothing unusual about getting paid 3 months after I submitted an invoice - so I didn't notice that both final amounts were the same and therefore duplicates.

Now 2 years later the umbrella company has sent a letter demanding the money back – they say they have reviewed their accounts and realised their mistake and they apologise for this inconvenience

I’m employed but in no financial position to re-pay the amount – anyone know where I stand on this?

The Ltd company they ran for me was closed in 2005.

Thanks

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.

[Dog_Yoghurt]

Hi all
I worked as a IT contractor in 2005 and used an umbrella company to take care of all my VAT/LTD. company details etc as I knew very little about that side of things.
When my contract ended I was paid my final 'salary' twice over 3 different months.
Because the umbrella company were so totally unorganised and inefficient there was nothing unusual about getting paid 3 months after I submitted an invoice - so I didn't notice that both final amounts were the same and therefore duplicates.

Now 2 years later the umbrella company has sent a letter demanding the money back – they say they have reviewed their accounts and realised their mistake and they apologise for this inconvenience

I’m employed but in no financial position to re-pay the amount – anyone know where I stand on this?

The Ltd company they ran for me was closed in 2005.

Thanks

Is there anything in the original T&Cs that states you pay back any overpayments?

You also said "The Ltd company they ran for me was closed in 2005." Were they paying the company? If so, and it's now ceased to exist, it's hard to see how they can crawl the money back. (I'm going on what I think you mean by "The Ltd company they ran for me was closed in 2005."