Salary Sacrifice car arrears

It has come to our attention that we were notified late for a number of car contracts for employees utilising the car leasing scheme and paying by salary sacrifice. As a result, the employees only started paying for the car one or more months after they were in receipt of the vehicle and were therefore overpaid from the month deductions should have started. This means that at the end of the lease one or more months deductions would be outstanding and would need to be paid. The start date for these are in the previous tax year. In order to bring these payment up to date, would it be correct to increase the deductions, with the employee signing an agreement, from current month until the end of the contract, or would we need to recalculate the payslip at the relevant month(s) to calculate the net overpayment to incorporate the correct tax and NI relief at that time

Hi Pam,
You will need to go back and amend the payroll for the relevant months from the date the salary sacrifice was agreed from and recover the net overpaid difference in salary from the employees. See Section 1.19 of the folowing on Gov.uk re overpayment of wages:
2024 to 2025: Employer further guide to PAYE and National Insurance contributions.
Thank you.

Hi, So to be clear, we can back date the salary sacrifice to the point of agreement in order to take into account payments not made. I have had advice from CIPP that states that we cannot back date salary sacrifice

Hi The response from CIPP had now been amended as they were not aware that the salary sacrifice agreement had been signed at the appropriate time i.e. before the first deduction should have been taken but was not leading to an overpayment

Hi Pam,
Please see previous answer, salary sacrifice is applicable from date it was agreed from.
Thank you.