National insurance
National Insurance Refund Due?
There is a limit as to how much NI you can pay. Particularly if you have income from more than one employment or from employment and self-employment, you may be due a refund.
Many people pay more NICs than they need to because collection of the different classes of Contribution are handled separately during the year - and the National Insurance Contributions Office (NICO) is not obliged to check for overpayments at the end of the year so repayments are not automatic.
Typical situations which might lead to overpaying NICs are:
- more than one job
- a full-time job and a part-time self-employment
Because NICs are now payable, albeit at only 1%, on all earnings over the £31,720 ceiling it is not possible for us to quote a 'maximum' amount of Contributions over which a repayment will be due, but if you fall into either of the above categories, there is a good chance that you have overpaid - unless you applied for deferment in advance.
Deferment of Class 1 NICs can be claimed if you have more than one job and earn more than £610 per week in at least one of them - deferment will usually be granted in respect of the lesser paid jobs, with a settling up after the end of the tax year.
Deferment of Class 2 and Class 4 NICs can be claimed if you believe that you will otherwise pay too much in NICs, again with a settling up after the end of the tax year.
Contact us if you believe you may have overpaid Contributions, or think that you might do so this year.
If last year you paid more than:
- £2,632.10 in standard rate Class 1 contributions
- £2,632.10 in standard rate Class 1 and Class 2 contributions
- £1,915.65 in Class 1, Class 2 and Class 4 contributions
Contact us today for advice on how to claim your refund.
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