Reclaiming overpaid employer NICs

Reclaiming overpaid employer NICs

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Clients are employed by their own company. They are both directors but in 2008-09 one of them was recorded as an employee rather than a director resulting in the overpayment of employer NICs. This has only just come to light. Is there a time limit for reclaiming the over payment?

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By zebaa
16th May 2011 12:30

From HMRC web site

Refund time limits

There is no time limit for reclaiming overpaid contributions where, for example, you had two jobs or were both employed and self-employed, or you haven't paid enough voluntary contributions for them to count as a qualifying year for your State Pension.

If you have overpaid or wrongly paid for any other reason, there is normally a six-year time limit for claiming a refund. So, for example, a claim for the tax year 2004-05 must be made by 5 April 2011.

However, if you are claiming a Class 2 National Insurance contributions refund because your self-employed earnings for the tax year were below the 'small earnings exception' limit, you must apply for it in writing between 6 April and 31 January following the end of the tax year in which the payments were made, and provide evidence of your earnings for the whole tax year.

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