NIC overpayment - best to pay now and claim back?

ijrwe

I have a request to pay my 14/15 NICc2 contributions but due to low earnings (unknown to HMRC yet) I should be eligible for a reduction or refund. Am I best off paying the full demanded amount now (deadline 31/7) and then later, when I submit my tax return, claiming it back?

And will that be refunded, if I qualify? Or am I supposed to get my tax return in before paying the NIC?

xylophone

There seems to be a reclaims process.
https://www.gov.uk/claim-national-insurance-refund

Mersey_2

It is confusing a lot of people.


In previous years, it was possible to simply apply for a small earnings exemption certificate re NICs (rather than pay £11pcm and then reclaim).


I think in Feb-March, HMRC wrote to everyone with these, saying even if they were still in force, from now on, HMRC want you to pay your NICs along with any tax due by the following January when you complete your online self-assessment.


So it's a bit odd if they're now sending reminders. Although they're also sending email reminders re self-assessment, so perhaps they just want people not to all leave it until the end of January 2016.


It seems particularly odd you've been given a deadline of this month. This is usually only for repaying overpayments of TCs etc.


HMRC and the DWP are currently chasing a lot of aged debt, so it may be an error, of course.

anmarj

Mersey - The OP is talking about 2014/2015. The new system did not kick in until April 15. NI should not be asked for 15/16 until the return is submitted next year and it should then automatically apply the small earnings exemption if it fall under the criteria.:)

ijrwe

Yea, this is 14/15 for me - and, in fact 13/14. I'm now past the time I could have reclaimed 13/14 so I'll have to surrender that, but the 14/15 amounts I'm hoping to be able to reclaim (deadline for doing so is the same as for tax returns), but I guess I'll have to pay up front and then ask for it back?