NIM17050 - Class 1A National Insurance contributions: Refunding Class 1A NICs: Types of Class 1A NICs refunds

Regulation 52, 55 and 55A of the Social Security (Contributions) Regulations 2001 (SSCR 2001) (SI 2001 No 1004)

The term 鈥榬efund鈥� is used to cover both:

  • the return of Class 1A NICs under regulation 52 SSCR 2001, and
  • the repayment of Class 1A NICs under regulation 55 SSCR 2001

As a result there are two types of Class 1A NICs refunds:

  • Class 1A NICs paid in error - regulation 52 SSCR 2001 (see NIM17060),
  • Class 1A NICs overpaid as the result of an incorrect assessment, which was based on inaccurate or incomplete information - regulation 55 SSCR 2001 (see NIM17080).

Special Provisions - the return of Class 1A NICs (earnings no longer treated as earnings for tax purposes) under Regulation 55A SSCR 2001

It was also possible, in certain circumstances, to claim a refund of Class 1A NICs paid in any tax year before 2008 to 2009, where the benefit on holiday homes purchased through a limited company are no longer treated as earnings for income tax purposes - regulation 55A SSCR 2001.