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HMRC internal manual

National Insurance Manual

From
HM Revenue & Customs
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Class 1A National Insurance contributions: Refunding Class 1A NICs: Late information about an employee’s UK residency status for tax purposes

Regulation 55(2)(b), SS(C)R 2001

NIM17080 explains that where an employer overpays Class 1A NICs because he is not in full possession of all the relevant information needed to calculate his Class 1A NICs liability, a refund can be made.

In certain cases however, information will not be available to the employer to confirm his Class 1A liability until after he has made his Class 1A NICs payment. This most often occurs in cases where a UK citizen leaves the UK to work abroad.

Some employers may pay Class 1A NICs on benefits provided to employees working abroad and subsequently establish that the employee did not satisfy the conditions as to residence or presence. In these circumstances, Regulation 55(2)(b) of the SS(C)R provides that:

  • where an employer has paid Class 1A NICs for an employee who is working abroad, and
  • it is later found that the benefits provided to him are not chargeable to income tax under ITEPA 2003 (before 6 April 2003 - chargeable to income tax under Schedule E).

a refund can be made. The further refund conditions set out at NIM17020 and NIM17030 must also be satisfied before such a refund can be made.