New digital process for NI refunds
HMRC has introduced an online service to claim a refund of Class 1 NI contributions but not everyone can use it. What can you do if you've paid too much NI?
It's now possible to claim a refund of overpaid Class 1 NI online, but only if HMRC writes to you about it first. HMRC systems use the data it holds to identify individuals that may have overpaid Class 1 NI. This could be due to an error made by your employer or because you had multiple jobs during a tax year.
However, like all HMRC systems, it isn't perfect and there's a chance the information it holds is wrong. If you receive a letter from HMRC about overpaid Class 1 NI, you first need to check whether the details are accurate. Errors can be corrected when you apply for a refund. If you think you may have overpaid NI, but haven't received a letter, you can use HMRC's tool to find out how to claim it. Spoiler: if your employer can't help you need to write to HMRC.
Related Topics
-
CT61
-
Government finally confirms date for capital goods scheme reforms
The government has finally confirmed when long-awaited changes to the capital goods scheme (CGS) will take effect. The reforms, first announced as part of a wider review of VAT simplification, will come into force on 29 July 2026. What does this mean for businesses?
-
The tax‑free perks league table
You know that there are certain items or services your company can pay for without incurring a tax charge, but you’re hazy on the details. What are the most valuable tax-free perks for owner managers and which ones are you missing out on?