Class 1 structural overview from 6 April 2003: 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 the Nationl Insurance and PAYE Service (NPS).
From the information held on a person’s National Insurance record and received on End of Year returns (or through Real Time Information returns), NPS will automatically calculate whether the employee has exceeded their maximum liability.
HMRC will continue to invite excess refunds where NPS identifies that the Class 1 and 2 maximum has been exceeded.
Although some staff may be asked to explain the maximum calculations, any query on whether an excess refund is due should be referred to Payment Reconciliation at PT Operations North East.
The examples of the maximum calculations included in this manual, see NIM01170 onwards are intended to assist any explanations that may be requested.