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Repayments of NIC arising from two or more jobs


Produced by a Tolley Personal Tax expert
Personal Tax
Guidance
tag-icon Year-end tax planning

Repayments of NIC arising from two or more jobs


Produced by a Tolley Personal Tax expert
Personal Tax
Guidance
tag-icon Year-end tax planning
imgtext

How an overpayment of NIC can arise

There is an annual maximum of contributions applying to any individual for a contribution year (tax year). This applies where the earner either:

  1. •

    has two employments (and is therefore paying Class 1 national insurance contributions (NIC) twice)

  2. •

    is both employed and self-employed (and is therefore paying Class 1, 2 and 4 NIC)

There is a proforma that must be followed to calculate whether a repayment is due. See below.

The start of a new tax year might require some consideration as to NIC paid in the past and a look ahead to the future, depending on a taxpayer’s current circumstances. For example, an application might need to be made to defer Class 1 contributions or an existing deferral renewed.

Changes that apply to the 2024/25 tax year

The mandatory requirement to pay Class 2 NIC is removed from 2024/25 onwards. Those below the small profits threshold can continue to pay Class 2 NIC voluntarily to protect their state benefit entitlements. See the Class

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  • 03 Dec 2024 08:20

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