New digital process for NI refunds
HMRC has introduced an online service to claim a refund of Class 1 NI contributions but not everyone can use it. What can you do if you've paid too much NI?
It's now possible to claim a refund of overpaid Class 1 NI online, but only if HMRC writes to you about it first. HMRC systems use the data it holds to identify individuals that may have overpaid Class 1 NI. This could be due to an error made by your employer or because you had multiple jobs during a tax year.
However, like all HMRC systems, it isn't perfect and there's a chance the information it holds is wrong. If you receive a letter from HMRC about overpaid Class 1 NI, you first need to check whether the details are accurate. Errors can be corrected when you apply for a refund. If you think you may have overpaid NI, but haven't received a letter, you can use HMRC's tool to find out how to claim it. Spoiler: if your employer can't help you need to write to HMRC.
Related Topics
-
HMRC moves tax return registration into the digital age
A new and improved self-assessment registration service has been launched. What's changed?
-
Unpaid directors still face new tax return reporting
HMRC has clarified that company directors who are already required to submit a self-assessment tax return must provide details of their directorships for 2025/26 even where they received no salary, benefits or dividends. Directors of dormant companies can also be caught. What do you need to know?
-
Do dividend waivers still work?
You need to take a dividend from your company but there’s just one problem. Your business partner, who is also a 50% shareholder, doesn’t want to take any more income from the company during this tax year. What’s the solution?