Hi There, 

ok, so we discovered a large overpayment and notified the employee, agreed terns and have been deducting money back through his salary (gross). The employee then notified us that they wanted to pay this in full and put the rest of the overpayment Gross into our account.  

He was entitled to a tax refund, which was processed last month and that was that. 

This month however, his tax is deducting 50% of his wages and is stating in the information tab that he owes a further £700.

Why is this and why would it give the employee a refund if this means he now owes tax