An employee discovers, after all employer year end returns have been filed, that the amount deducted for NIC from his pay is excessive in law. Which of the following statements is/are correct?
1) As it was the employer's error, the employee's only redress is to apply for the shortfall from the employer, who in turn then has to attempt to recover from HMRC by an amendment to annual PAYE return.
2) Despite that it was the employer's error, as annual returns have been filed, the employee's only redress is to HMRC who must refund
3) The employee has a choice regarding to whom to apply for the refund, but whichever route is chosen the other party is obliged to stump up.
4) There is no formal mechanism in law for the employee to apply direct to HMRC for the refund but by concession HMRC will (always/usually/offten/sometimes on a whim, delete as applicable) honour the claim.
Finally, does your answer to the above vary if it was income tax rather than NIC? In my experience HMRC will normally accept that PAYE income tax if duly paid albeit incorrectly calculated will generally be accepted as a (potentially repayable) credit against the employee's income tax liability. But is that just by concession?
With kind regards