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HMRC internal manual

National Insurance Manual

Class 1A National Insurance contributions: Refunding Class 1A NICs: Refunding Class 1A NICs overpaid: Inaccurate or incomplete information

Regulation 55(2)(a) SS(C)R 2001

NIM17060 explains that a refund can be made where Class 1A NICs were paid in error. Class 1A NICs can also be refunded if they were overpaid because the original calculation was based on incomplete or inaccurate information.

A refund can only be considered under regulation 55 if, at the time of the Class 1A NICs payment, the information:

  • provided to the employer was inaccurate, or
  • was not made available to the employer.

Information in this context means details of a particular benefit or a particular employee that could influence the calculation. An example is the late submission by the employee of information relating to the number of days a benefit was made available.

To refund Class 1A NICs under regulation 55(2)(a), the information must exist but be unknown to the employer at the time of the Class 1A NICs calculation.

Events which take place after Class 1A NICs are paid and which alter the amount of a taxable emolument, for example the late making good by the employee of the cost of a benefit, is not considered late information, see NIM17130. When the employer calculates Class 1A NICs he can only take into account any making good payments by the employee up to that point. An exception to this general rule about late information occurs where information about an employee’s residency status for tax purposes has not been finally established at the time Class 1A NICs are due to be paid, see NIM17090.