National Insurance Contributions Refund

CYPER

In 2006-2007 I worked for 2 employers one after another and my total earnings were 4973, which was below the personal tax allowance at the time. I asked for a tax recalculation and the Tax office refunded all the tax I paid. I have also paid a total of £176.22 NIC.

But then a used a tax calculator such as http://listentotaxman.com/ and it says that I don't have to pay any NICs for such an income.

Therefore my question is: Is there any scheme for NIC overpayment refund?

Thank you.

persa

CYPER wrote: »

In 2006-2007 I worked for 2 employers one after another and my total earnings were 4973, which was below the personal tax allowance at the time. I asked for a tax recalculation and the Tax office refunded all the tax I paid. I have also paid a total of £176.22 NIC.

But then a used a tax calculator such as http://listentotaxman.com/ and it says that I don't have to pay any NICs for such an income.

Therefore my question is: Is there any scheme for NIC overpayment refund?

Thank you.

There's no such thing as an overpayment of employer's class 1, but an overpayment of employee's class 1 can arise.

Rules are complicated, but they're all set out in this HMRC manual: http://www.hmrc.gov.uk/manuals/nimmanual/nim37000.htm

CYPER

I don't mention anything about employer's NICs.
I ask about employee's NICs only.

persa

CYPER wrote: »

I don't mention anything about employer's NICs.
I ask about employee's NICs only.

As I said, employee's class 1 can be refundable in certain circumstances. The rules are set out in the link I mentioned.

dickydonkin

CYPER wrote: »

I don't mention anything about employer's NICs.
I ask about employee's NICs only.

That may be true but persa has answered your question as requested and provided additional info for other posters that may be relevant to them.

chrisbur

CYPER wrote: »

In 2006-2007 I worked for 2 employers one after another and my total earnings were 4973, which was below the personal tax allowance at the time. I asked for a tax recalculation and the Tax office refunded all the tax I paid. I have also paid a total of £176.22 NIC.

But then a used a tax calculator such as http://listentotaxman.com/ and it says that I don't have to pay any NICs for such an income.

Therefore my question is: Is there any scheme for NIC overpayment refund?

Thank you.

In your case you will not be entitled to any refund. Refunds are only given to someone who has two jobs at the same time and has paid more NI in total than they would if they had one job and paid the maximum possible NI in that job.

As with all tax and NI calculators they do not always give the correct answer in all circumstances. The answer you got of no NI due assumed that the income of £4973 was spread out over the full year ie about £95 a week or £414 a month, but in your case it must have been paid for a shorter time and you had periods when you recieved no pay.

CYPER

dpassmore wrote: »

That may be true but persa has answered your question as requested and provided additional info for other posters that may be relevant to them.

Thank you for your clarification, but as persa has pointed out the rules are complicated and that's why I was hoping to get a simple answer through the forum, but maybe I'm hoping too much

CYPER

chrisbur wrote: »

In your case you will not be entitled to any refund. Refunds are only given to someone who has two jobs at the same time and has paid more NI in total than they would if they had one job and paid the maximum possible NI in that job.

As with all tax and NI calculators they do not always give the correct answer in all circumstances. The answer you got of no NI due assumed that the income of £4973 was spread out over the full year ie about £95 a week or £414 a month, but in your case it must have been paid for a shorter time and you had periods when you recieved no pay.

Thank you for your answer.
So the simple rule is as long as I earned more than the Primary threshold I pay NIC on that earning, regardless of my monthly or annual income and that NIC is not refundable, correct?

chrisbur

CYPER wrote: »

Thank you for your answer.
So the simple rule is as long as I earned more than the Primary threshold I pay NIC on that earning, regardless of my monthly or annual income and that NIC is not refundable, correct?

Broadly yes. If you are paid weekly there is a weekly threshold above which you pay NI and if you are paid monthly there is a monthly threshold above which you pay NI. These payments are then not refundable, to get any refund you would need to have two jobs at the same time and to have earned far more than you did.