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HMRC internal manual

National Insurance Manual

From
HM Revenue & Customs
Updated
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Class 1 structural overview from 6 April 2003 to 5 April 2009: structural changes: the Class 1 and 2 annual maximum: NPS calculations

Although guidance on the annual maxima is included in this manual, see NIM01160 onwards, the majority of Class 1 and 2 maximum calculations will continue to be undertaken automatically by NPS.

From the information held on a person’s National Insurance record and received on End of Year returns, NPS will automatically calculate whether the employee has exceeded their new maximum liability.

HMRC will continue to invite excess refunds where NPS identifies that the Class 1 and 2 maximum has been exceeded.

Although Local Services staff may be asked to explain the new maximum calculations, any query on whether an excess refund is due should be referred to Payment Reconciliation at NIC&EO.

The examples of the maximum calculations included in this manual, see NIM01170 onwards are intended to assist any explanations that may be requested.