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HMRC internal manual

Self Assessment Manual

HM Revenue & Customs
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Repayments: claims made outside a return: claims: overpayment relief (Action Guide)

Where the taxpayer’s claim to relief in respect of Class 4 NIC overpaid results in an unallocated overpayment on the SA record, follow steps 1 - 4 below.

1. Check the stencil from NIC&EO for notification of any unpaid Class 2 NIC and exceptionally, any Class 4 NIC unpaid for earlier years. Also check if there is any ongoing Receivable action to collect NICs
2. If there are NIC liabilities outstanding to which the unallocated overpayment can be set, write to the taxpayer advising of the set-off to be made
3. Transfer the unallocated credit, up to the value of the outstanding Class 2 and Class 4 NIC, to OAS using function TRANSFER FROM OVERPAID BALANCE
4. Complete form SA331 (available for completion and printing from SEES) with the following details
  * Transferred amount (if amount is less than £10 state the reason for transfer as ‘Class 4 NIC Deferment cases’
  * OAS number (from the Transfer from Overpaid Balance’ screen TCA037C)
  * Area Code 17
  * National Insurance Number
  Note: ‘Period of debt’ is not required on the SA331 in these cases.