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
Replies (2)
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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).
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.