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HMRC internal manual

National Insurance Manual

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)