National Insurance Refund

#1
If the TA is your 2nd income (I assume that affects most of us) you will be paying NI contributions on that income that you shouldn't be, problem is that you have to claim it back. Does anyone know how this is done, I have scoured the HM Revenue & Customs web site and at best it can be described as not very helpful, the best I can find is;
What to do if you think you’ve overpaid NICs
The National Insurance Contributions Office usually gets in touch if you’ve paid £42 or more above the annual limit for Class 1 and/or Class 2 NICs.

However, if you think you’ve overpaid but haven’t been notified, write after the end of the tax year (5 April) to: HM Revenue & Customs, National Insurance Contributions Office, Benton Park View, Newcastle upon Tyne, NE98 1ZZ.

Mark the envelope as follows:

‘Refunds Group’ - for Class 1 and/or Class 2 NICs paid above the annual limit
‘Self Employment Services’ – for wrongly paid Class 2 NICs
‘Deferment Services’ – for overpaid Class 4 NICs
In your letter tell them:

your National Insurance number
why you’ve think you’ve overpaid
which tax years you think you overpaid, and which class(es) of NICs
Include evidence, for example:

a P60 or statement from your employer(s) showing NICs deducted from your wages during the tax year (Class 1)
your quarterly bill receipt (Class 2)
your Self Assessment Statement of Account (Class 4)

The section or group you contact will check your details and normally send you an application claim form on which you can apply for a refund if you are due one. This can take anything from seven days to a few weeks – but the more clear evidence you can supply, the quicker they’ll be able to deal with your claim.
Anyone know a better way?
 
#2
VerminWA said:
If the TA is your 2nd income (I assume that affects most of us) you will be paying NI contributions on that income that you shouldn't be
You sure? I thought you had to pay NI on everything, 1st, 2nd or 3rd job... irrespective.

TB
 
#3
Pretty sure, I believe that a few years ago a lot of guys in my unit claimed it back. One person sorted the forms etc and I would like to do the same again.
 
#4
As I recall, and it's a long time since I claimed, you should only pay NI once a day. Therefore, if your firm gives you PAID leave to cover your Camp, then you've effectively paid NI twice for each day. You should be able to claim it back. Presumably, the same would apply for 1/4 days if you get this for a Friday night before weekend training.

In my case, I didn't have to make an effort to apply. I received a letter through the post informing me that I had over-contributed and would receive a refund by returning an enclosed form. The refund spanned about 5 years, as I recall.

This was about 20 years ago, though, so the system may have changed since.

IIRC, the rules at that time required you to pay NI for up to 6 days a week, so if you worked 7 (5 days civvy + 2 days TA), you had over-contributed by one day, so this was also claimable.
 
#5
You can claim it back.

I got a letter from them at the end of the last tax year telling me that they thought I had over paid. I sent them the info they wanted and I got the NI back.

From Memory there used a maximum that could pay in NI every year +- £2700 IIRC. This was changed when the 1% on everything increase came in a couple of years back.

You will be paying NI at 9% on your TA pay as the Army is too thick to work things out, so in theory you can get your 8% back from the NI people.

However make sure that you dont cross the higher rate tax threshold with your TA pay as you are only PAYE'd at basic rate. You can end up 2% down on the whole deal as the two dept dont talk to each other.

Im not an accountant, so check the figures with the revenue.
 
#7
Ok, there is a few mis-understanding here. You pay NI on your second job (TA) as well as your day job. You only get a claim back if you over pay you NI. There is an upper limit of NI that anyone will pay and that normally around where the Higher rate tax kick in. So unless you are higher rate taxpayer. you will not get any NI refund. And iif you are a higher rate tax payer and you got BR tax code on your TA pay then you would have to fill a Tax return form and pay the exta 18% you own the revenue. Hope that clear everyone mind here
 
#8
That covers a fair ammount of the people in my unit, being in the South East you have to get paid enough to pay higher rate tax just to be able to afford a 2 bed flat and a pint on a Friday night! The South East sucks!
 
#9
Now, obviously I am eager to pay my full tax bill. If one were on the higher tax rate and got in touch with the tax office about this, would one end up paying more money than one got back in a rebate?
 
#10
At the moment, the people running Tax and NI don't appear to talk to each other.

My feeling is that what you gain on the swings, you most definitely lose on the roundabouts, and when these two start swapping information, the fact that I asked for a refund from one, would lead to a request for more money from the other. I really don't feel like having them go back through a couple of years earnings and clawing it back, which they could do via the current tax code system, even once I'm out of the TA.

Tax avoidance is one thing - tax evasion is another.

Having said that, I've no first hand experience of anyone trying to make a reclaim of their NI, so perhaps they're all very nice about it?

A couple of people in my unit are on Self Assessment forms, and so declare their TA earnings. Losing more of their TA pay isn't that much of a pain (as they're on higher rate already) but there have been a few whinges when we talk about TA earnings for a weekend.
 
#11
Purple_Emperor said:
Now, obviously I am eager to pay my full tax bill. If one were on the higher tax rate and got in touch with the tax office about this, would one end up paying more money than one got back in a rebate?
Yes, absolutely ! If you are already on the higher band through your civvy job then every penny you earn from the TA, bar bounty, would get hit with the difference between the two bands. NI refund would be peanuts by comparison.

Bitter personal experience.....
 
#12
Trossachs said:
Purple_Emperor said:
Now, obviously I am eager to pay my full tax bill. If one were on the higher tax rate and got in touch with the tax office about this, would one end up paying more money than one got back in a rebate?
Yes, absolutely ! If you are already on the higher band through your civvy job then every penny you earn from the TA, bar bounty, would get hit with the difference between the two bands. NI refund would be peanuts by comparison.

Bitter personal experience.....
Yep same here. I repay about three times as much in tax as I get in NI refund. Mind you I repay the tax through next year's tax code and get the refund as a nice cheque. The Revenue can and will go back up to six years and claim repayment - it really is NOT worth trying to fiddle this. Even keeping quiet about your underpaid tax would be a risk not worth taking IMHO.....

Anyway something about integrity occurs to me here. Sorry I'll shut up and go away.
 
#13
I'm paying the tax as I'm on self assessment, therefore I want to claw back what I can even if its just a small sum!

Edited for poor grammer
 
#14
Greyman said:
Ok, there is a few mis-understanding here. You pay NI on your second job (TA) as well as your day job. You only get a claim back if you over pay you NI. There is an upper limit of NI that anyone will pay and that normally around where the Higher rate tax kick in. So unless you are higher rate taxpayer. you will not get any NI refund. And iif you are a higher rate tax payer and you got BR tax code on your TA pay then you would have to fill a Tax return form and pay the exta 18% you own the revenue. Hope that clear everyone mind here
rates

Rates for NI given at above link.

EMployees pay Class 1. Current upper threshold is £645 a week, i.e. approx £33.5K, so close to top tax rate, but a few £K below it.

Searching above sight will give address of people to speak to for NI refund.

As Greyman pointed out, the amount of NI you have to pay is determined by your income, not by the no. of jobs you have. If you gave up a £30K, full time job, and took 2, £15K part time jobs, you would still have the same NICs to pay.
 

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