National Insurance Overpayment

laurenzo99

Hello,

Thanks in advance for reading,

My situation is that my emplyer was late paying me and so dumped two weeks pay together (should have been split 42 hours and 37 hours) into one lump sum.

I was paid this as one lump sum in part of my weekly wage and so have been national isuranced more than i should have (I only got one week with the first £100 free and not two)

Is it worth asking for it back, for the sake of £10.

And if so who should i go to?

chrisbur

laurenzo99 wrote: »

Hello,

Thanks in advance for reading,

My situation is that my emplyer was late paying me and so dumped two weeks pay together (should have been split 42 hours and 37 hours) into one lump sum.

I was paid this as one lump sum in part of my weekly wage and so have been national isuranced more than i should have (I only got one week with the first £100 free and not two)

Is it worth asking for it back, for the sake of £10.

And if so who should i go to?

Your employer has worked out your NI wrongly. In cases like this it should be worked out as two seperate weeks, as in the example from the employers' guide.
"Example
[FONT=DILHG O+ Stone Sans,Stone Sans]Two separate weeks’ wages for weeks ending 6 June and 13 June are paid on 13 June. Work out NICs separately on each week’s payment. Record the NICs information for the late 6 June payment on the employee’s form P11 on the line covering 6 June. "
[/FONT]From page 37 of
http://www.hmrc.gov.uk/guidance/cwg2.pdf

firstinflight

I'd check your PAYE as well, chances are, you've been given 1 week's tax-free allowance for 2 weeks' pay.

chrisbur

firstinflight wrote: »

I'd check your PAYE as well, chances are, you've been given 1 week's tax-free allowance for 2 weeks' pay.

This would only affect the tax if you were on a week 1 code which is unlikely this early in the tax year.

laurenzo99

tax is ok i have checked that.

Have since realised that it should have in fact been over THREE weeks and so i have made following calcualtions

WEEK 1: 12.25 hours

12.25 hours x £6.0884 = £74.58 -> Should not have an NI since earned under £105 in the week
should not have been NI

WEEK 2: 30 hours

30 hours x £6.0884 = £182.65 -> £182.65 - £105 weekly allowance = £77.65
should have been NI on £77.50 at 11% = £8.54


WEEK 3: 37 hours

37 hours x £6.0884 = £225.27 -> £225.27 - £105 weekly allowance = £120.27
should have been NI on £120.27 at 11% = £13.23


The NI that I SHOULD have been charged is £13.23 + £8.53 = £21.77
But in fact I WAS ACUALLY charged £41.52.

This means I have been overcharged by £19.75 (£41.52- £21.77) since my hours were put through as worked in one single week, rather than over three weeks.

Does this look right?

laurenzo99

Have emailed my employer but is it their responsibility to refund me the NI. I know you usually have to write to NI and explain but it was THEIR fault.

laurenzo99

hoping someone will confirm whether my calcualtion are correct. and also whether i will get the money back directly from my employer

janienewcastle

Hello, I work for HMRC NICO and yes you should get the refund direct from the employer as you would need to wait until this time next year to get it from HMRC.

laurenzo99

thank you very much for your reply. I am glad that it is the employer who must sort it out!