National Insurance Contributions - Are You Due a Refund?

Discussion in 'Army Reserve' started by abacus, Jun 3, 2005.

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  1. Mods - happy for this to be a sticky if you think appropriate:

    If you earned more than £31,720 including TA Pay of more than £4745 in tax year ended Apr 05 you probably paid too much NI and will be due a refund.

    TA Pay deducts tax at basic rate assuming you have used your allowances in other employment but deducts NI Contributions as if they were the sole employer. Note, this means if you are due a NI rebate you probably also owe them tax. :evil:

    Employee NI Contribution for 04/05 works as follows:

    11% of all earnings between Lower Earnings Limit of £4,745 and Higher Earnings Limit of £31,720. Therefore 11% of £26,975 or £2,967.25

    You then pay 1% on everything else above the Higher Earnings Limit.

    Because of the way TA Pay is calculated, you will have probably have paid the 11% rate on bits of your pay where you should only have been paying 1%.

    Obviously, if you have earned less than £4,745 from TA and/or less than £31,720 in total you don't have a problem but some big earners (don't the TA love to tell their Reg counterparts how much they're on in civvy street?) can get substantial refunds.

    For those who think they're due one, full details available from the Refunds Line on 084591 57778. (I assume this is a weekday, working hours number) They can tell you if you're due anything from previous years as well.
     
  2. OldSnowy

    OldSnowy LE Moderator Book Reviewer

    Oh yes, I get the Form every year, fill it in, send it off, and - eventually - get a cheque back. Very handy!
     
  3. My only concern with reclaiming the NI, is that the Inland Revenue are then aware of all this extra income, and potentially will come and have a chat with you about paying tax at Higher Rate, rather than the Basic Rate that is currently deducted.

    What Inland Revenue give with one hand, they undoubtedly will receive in the other.
     
  4. You are absolutely right - I have been getting a refund every year for the last number of years.

    Simply photocopy your P60s from all your employers,(civi and MoD) write a nice covering letter claiming the refund for this year. I usually write to them about August time and the cheque comes in the post a few weeks later.

    If you haven't been claiming this back each year then ask them to go back "x" years for you and you may be suprised.

    Just quote your NI number and the address to write to is.......

    Contributions Office
    National Insurance
    Refunds Group BP2001
    Benton Park View
    Longbenton
    Newcastle-upon-Tyne
    NE98 1ZZ

    Tel: 084591 59873
    Fax: 084591 59975

    Youve earned it so get it of them - they take enough from our pays anyway so if you fall into the refund category then go for it.

    Oh! And leave a pint for me behind the mess bar out of your refunds!!
     
  5. As I understand it, the two Departments do not communicate directly with each other in this respect. (Imagine that, 2 Govt Depts not communicating :roll:)

    But the Inland Revenue WILL eventually work it out and chase you - and they can charge you backwards for an unlimited number of years PLUS interest and fines, you can only reclaim for a limited number (I believe 7 but could be wrong).

    Advice to all is, if you earn 2 incomes, fill in the tax return even if you think you don't owe anything.