½Û×ÓÊÓƵ

How an overpayment of NIC can arise

There is an annual maximum of contributions applying to any individual for a contribution year (tax year). This applies where the earner either:

1. •

   has two employments (and is therefore paying Class 1 national insurance contributions (NIC) twice)

2. •

   is both employed and self-employed (and is therefore paying Class 1, 2 and 4 NIC)

There is a proforma that must be followed to calculate whether a repayment is due. See below.

The start of a new tax year might require some consideration as to NIC paid in the past and a look ahead to the future, depending on a taxpayer’s current circumstances. For example, an application might need to be made to defer Class 1 contributions or an existing deferral renewed.