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Error on employed NI deductions

how to resolve

a client has had a demand for additional NI contributions for one of their employees

it transpsires that the client had the date of birth incorrectly recorded and had the employee down as a category C rather than an A

the employee was only employed for around 4 months and has left

as the client has in effect overpaid the employee by the value of NI contributions, my question is two fold:

  1. is the client liable to pay the deductions or
  2. should the employee be liable to pay the deductions
  3. if 1 is yes, can the client recover the overpayment from the employee?

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10th Nov 2017 12:42

Yes
No
Doubt it

How much are we talking about?

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10th Nov 2017 12:44

thanks

about £450, not a huge amount but something they'd rather not pay unless they have to

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10th Nov 2017 14:32

1. The employer has an obligation to pay over both parts of the NI, which he has failed to do.

2. He has an option to recover the primary contributions from the employee but has not taken advantage of this option.

3. Only if the employe agrees. Good luck.

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10th Nov 2017 17:01

I feel for you. I used to run a payroll for a badly organised charity. The person giving me the data for starters gave me a dob indicating the person was a pensioner.
When HMRC queried at the end of the payroll year I had to recalculate the pay using correct dob.
I'll bet dob is a common problem for payrolls in general.

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to Moonbeam
10th Nov 2017 17:14

A few years ago, we had one female employee who flatly refused to disclose her dob.

Wouldn't happen these days - we'd be looking for a passport or driving licence before she started work.

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