Repayment of Maternity Pay

My daughter has to pay back some of her occupational maternity pay. Her employer wants her to pay this back gross as it relates to a previous tax year. We believe she should pay it back net and the employer claims the tax and national insurance back by submitting a prior year submission on their payroll. Which situation is correct ?

Hi hlnburton,
Recovery of an unintentional overpayment of salary, which occupational maternity pay is classed as, is from the difference in net pay, this is irrespective of whether it is for the current or previous tax year. Once the repayment has been agreed and proper arrangements are in place to recover this, and evidence kept to demonstrate how the recovery was made or is being made then the employer can adjust the RTI information. More information can be found at 1.19 of CWG 2 https://www.gov.uk/government/publications/cwg2-further-guide-to-paye-and-national-insurance-contributions/2022-to-2023-employer-further-guide-to-paye-and-national-insurance-contributionsat
Thank you.

Thank you. Does this mean that my daughter makes the repayment net of tax ?

Hi 
Yes, your daughter shoud repay the net overpaid difference.
If her employer needs this conformed, they should call the Employer Helpline 
Employers: general enquiries
Thank you. 

I'm in exact this situation now finding conflicting info, can I advise employer to contact HMRC employer helpline and calculate the net amount for me to repay them? My maternity pay period spans from August 2023-May 2024.

Hi Valentini,
The employer can call, however HMRC would not assist in the calculation, there are calculation online which the employer can use to calculated the net overpayment.
Thank you.