There’s nothing better than getting a tax rebate. And, if you have paid too many National Insurance Contributions (NICs), you can also get a rebate. Our guide explains why you may have paid too many NICs and how you can claim this money back.
When you may have overpaid NICs
There are several reasons why you might have paid too many National Insurance Contributions:
- You had more than one job and your earnings were over around £800-£850 per week
- You continued paying Class 2 contributions after reaching state pension age
- You ceased being self-employed but continued to pay Class 2 contributions
- You were both employed and self-employed in the same year and paid too many Class 1, 2 or 4 contributions
You are most likely to have overpaid NICs if you had more than one job or you reached state pension age whilst still working.
How to claim a National Insurance rebate
Claiming a rebate of overpaid National Insurance Contributions is straightforward, although the process is slightly different depending on which class of contributions you believe you have overpaid.
The HM Revenue & Customs (HMRC) National Insurance Contributions Office will normally get in touch with you if you have paid £48.50 or more above the ‘annual limit’ for Class 1 and/or Class 2 National Insurance contributions.
If you think you have overpaid but you have not been notified, you should write (after the end of the tax year) to HMRC’s National Insurance Contributions department.
Your letter should include:
- Your National Insurance number
- Why you think you have overpaid NICs
- Which tax years you think you have overpaid in
- Which class(es) of NICs you think you have overpaid
- A P60 or statement from your employer showing the NICs that have been deducted from your wages during that tax year (if you are employed)
If you believe you have overpaid Class 2 or Class 4 NICs (or if you think you have paid them when you didn’t need to) you will need to complete a specific form from HMRC. Complete either a CA5610 Application for a refund of Class 4 National Insurance contributions or a CA8480 Application for refund of Class 2 National Insurance contributions.
When to apply for a National Insurance Contributions rebate
You should always make your application for a NIC rebate after the end of the tax year.
If you have paid too many NICs (for example if you had two jobs), there is no time limit for reclaiming these overpaid contributions. However, if you have overpaid or wrongly paid for any other reason, there is normally a six-year time limit for claiming a refund.
However, if you are claiming a rebate of your Class 2 National Insurance contributions because your self-employed earnings for the tax year were below the ‘small earnings exception’ limit, you must apply for it in writing between 6 April and 31 January following the end of the tax year in which the payments were made.