New digital process for NI refunds
HMRC has introduced an online service to claim a refund of Class 1 NI contributions but not everyone can use it. What can you do if you've paid too much NI?
It's now possible to claim a refund of overpaid Class 1 NI online, but only if HMRC writes to you about it first. HMRC systems use the data it holds to identify individuals that may have overpaid Class 1 NI. This could be due to an error made by your employer or because you had multiple jobs during a tax year.
However, like all HMRC systems, it isn't perfect and there's a chance the information it holds is wrong. If you receive a letter from HMRC about overpaid Class 1 NI, you first need to check whether the details are accurate. Errors can be corrected when you apply for a refund. If you think you may have overpaid NI, but haven't received a letter, you can use HMRC's tool to find out how to claim it. Spoiler: if your employer can't help you need to write to HMRC.
Related Topics
-
Company buying back shares? Watch out for forthcoming changes
Company owners arranging a retirement, a family succession or a shareholder exit may need to rethink how shares are bought back. The Budget confirms that the government intends to tighten the rules distinguishing capital gains from dividend income, potentially making some buybacks considerably more expensive. How might an ordinary business exit be caught?
-
What can you learn from HMRC’s input tax toolkit?
You know that penalties can be charged on careless errors and many mistakes relate to input tax being wrongly claimed. How can HMRC’s input tax guidance help your business to claim the right amount?
-
A £3,000 side-hustle allowance: more generous than it looks?
People making money from small side businesses will have more room to earn without paying income tax, following a Budget decision to triple the trading allowance. However, the figure relates to what you receive before expenses, not the profit you keep. Will the £3,000 allowance actually save you tax?