Refunds: Class 1: Minimum refund level
Regulation 52(1), SS(C)R 2001
A refund of Class 1 NICs paid over the annual maximum or in error, will be invited automatically by the Department if the amount involved is above one fifteenth of a Class 1 standard rate not contracted-out primary contribution payable on earnings at the weekly UEL for the last, or only, tax year for which the NICs were paid.
For example, for the 2017-2018 tax year here is how this is worked out:
weekly UEL = £866
primary Class 1 contribution rate = 12%
(866 x 12%) ÷ 15 = £6.93
Below this amount HMRC is not required by law to make the refund (Regulation 52(5) SS(C)R 2001)
Subject to the foregoing, there is a level below which a refund is available only if thecontributor asks for it. The Department sets this ‘small refund level’ at half the current year’s weekly LEL.
For example, for the 2017-2018 tax year the small refund level is (£113 ÷ 2 = £56.50)