Reclaiming NI This Year

Krash420

Hi All,

I've started a new job a few months ago, and there was one month where I got paid by both companies, and therefore paid NI and PAYE on both. This meant that I underpaid PAYE for that month (as it gave me the tax-free\lower band allowance for both jobs) , but I also paid the higher NI for both jobs.

This month, my job got the details from my previously employer, and I've therefore paid the PAYE through my salary (though I think it's too much, so come April I'll most likely have to claim it back - unless it's corrected next month). NI on the other hand wasn't adjusted (it never is), and so I need to reclaim about £300 of NI.

Unlike PAYE which is adjusted as needed through the Tax Code, NI isn't so I don't think they'll correct themselves in this tax year. My question is, do I need to wait till the end of the year to claim it back, or can I claim it back now?

Any help is appreciated. Thanks.

booksurr

- NI is paid on the basis of the money earned in each and every individual job.
- NI is calculated on the basis of the amount earned in each job in each pay period.
- it is not reclaimable if the correct amount has been calculated in each job.

for each individual job you get a tax free allowance, that is unlike income tax where you only get one allowance no matter how many jobs you have per month. It is therefore likely your NI is correct

chrisbur

It used to be the case that if your NI deduction has been based on more than 12 times the upper earnings limit you could get a refund. As far as I know this still applies but difficult to check these days with the simplified gov.uk site. The refund would not be all that was paid just the difference between 12% and 2% on the part that exceeded the 12 times the UEL. This would only apply if your earnings were close to the UEL which your post suggests may be the case.

Max liability is based on 53 weeks not 12 months; for full details see post by jimmo below.

jimmo

chrisbur wrote: »

It used to be the case that if your NI deduction has been based on more than 12 times the upper earnings limit you could get a refund. As far as I know this still applies but difficult to check these days with the simplified gov.uk site. The refund would not be all that was paid just the difference between 12% and 2% on the part that exceeded the 12 times the UEL. This would only apply if your earnings were close to the UEL which your post suggests may be the case.

Is this any use?
http://www.hmrc.gov.uk/manuals/nimmanual/NIM01251.htm

Krash420

booksurr wrote: »

- NI is paid on the basis of the money earned in each and every individual job.
- NI is calculated on the basis of the amount earned in each job in each pay period.
- it is not reclaimable if the correct amount has been calculated in each job.

for each individual job you get a tax free allowance, that is unlike income tax where you only get one allowance no matter how many jobs you have per month. It is therefore likely your NI is correct

Really? I did not know this at all, I always assumed it worked similarly to PAYE. Guess I wont be getting a £300 rebate of National Insurance. Kind of feels stupid, I guess I made a mistake resigning a day too late, as if Id resigned on the end of the month, my holiday pay would have been paid in the previous months salary and NI would have been taken off at 2% rather than 12% for almost most of it.