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HMRC internal manual

Decisions and appeals for National Insurance Contributions and Statutory Payments

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Notices of decision: Wording of decisions about late applications for refunds of National Insurance contributions: Paid in error: Examples

DANSP38600 and DANSP38700 tell you who to name and the period to cover in decisions about whether late applications for refunds can be admitted. The examples below apply the legal requirements and general principles for wording decisions in DANSP29200 and DANSP29300.

Example one

Facts

A woman received a payment from her employer in 2000/01 after her employment ended. Her employer deducted primary NIC, and paid secondary and primary to the Inland Revenue. After reading an article in a taxation publication, the woman wrote to HMRC in February 2009 asking them to confirm that the payment was not earnings and therefore, Class 1 National Insurance contributions (NIC) were not due. She requested a refund of the NIC paid in error. HMRC

* confirmed that based on the facts presented, Class 1 NIC were not due and therefore, paid in error, and
* advised that a refund could not be made because the application was not made within the period specified in regulation 52(8) of the Regulations.
  
The applicant explains why she thinks she had a reasonable excuse for making an application after the end of the specified period within which applications can be admitted. HMRC considers that she does not have a reasonable excuse so will not admit the application.
  
Decision 
  
My decision is that:
  
You did not have a reasonable excuse for not making the application for repayment of the Class 1 contributions you paid in error in the 2000/01 tax year amounting to £124.38 within the specified period.

In cases where HMRC accepts that a person has a reasonable excuse for making a refund application late, to admit the application, HMRC must be satisfied that the application was made without unreasonable delay after the excuse had ceased. In cases where HMRC considers that there has been an unreasonable delay, the wording of the decision should reflect this, see example 2 below.

Example 2 decision 
  
My decision is that:
  
You have a reasonable excuse for not making the application for return of the Class 1 contributions you paid in error in the 2000/01 tax year amounting to £124.38 within the specified period.
  
Your application cannot be admitted because it was made with unreasonable delay after the reasonable excuse had ceased.

### Commentary on examples

The wording of the decisions reflect the fact that conditions in regulation 52(8) of the Regulations are not satisfied.

Before issuing such a decision, HMRC should have told the contributor

* what the specified period was,
* what conditions must be satisfied to allow a contributor to pay after the specified period, and
* why the contributor did not satisfy those conditions.

### Special Class 4 NIC

See DANSP39200 about the admission of a late application for a refund of special Class 4 NIC.