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 ‘refund’ 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.