Calculating maximum Class 1 contributions

Calculating maximum Class 1 contributions

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I have a client who has employment income of approx £90k and they are also self employed (profits approx £10k). How do I know whether they can claim a refund for Class 2 contributions? I have read that there is a maximum amount which can be paid as Class 1 meaning no Class 2 are needed but I cant actually find a specific amount anywhere. 

I am aware that going forward from 6 April 2015 any would be calculated when the 15/16 return is due so isnt an issue.

Many thanks

Chicka

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By sijolees
09th Jun 2015 09:24

The annual maximum is not a set amount but the equivalent of 53 weeks of class 1 NIC at the normal rate plus any liability from the additional 1% rate. The annual maximum is different for everyone because of the additional 1% liability.

It sounds like a refund will be due. If you apply to the NIC Office they will generate a personalised computation (eventually).

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RLI
By lionofludesch
09th Jun 2015 10:06

Maximum

There are two maxima.  A Class 1 + Class 2 maximum and a Class 1 + 2 + 4 maximum.

If your client has the one job and hasn't paid any Class 4 contributions, I'm thinking that there won't be a refund.

As sijolees says, the maximum is different for everyone.  Much more complex than it used to be, I'm afraid.

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