NIM38504 - Refunds: Class 2, 3 and 4 NICs: time limits for applications

Regulations 52, 102, 110 Social Security (Contributions) Regulations 2001

There is no time limit on applications for the refund of:

  • Class 2 or Class 4 NICs paid in excess of the annual maximum; or
  • Class 3 NICs which are precluded (see NIM25005 for information on preclusion)

The above legislation provides the time limits for applications for refund of Class 2 and Class 4 NICs paid in error, and for refund of special Class 4 NICs paid in error or in excess.

Time limit for refund of Class 2 NICs paid in error

Regulation 52, paragraph 8, requires an application for refund of Class 2 NICs paid in error to be made within a period of 6 years from the end of the year in which the contribution was due to be paid.

Time limits for refund of Class 4 NICs paid in error

Regulation 102, paragraphs 2 and 3, requires an application for refund of Class 4 NICs paid in error to be made within the following periods

  • Where the application is for any tax year prior to 1996 to 1997 - within six years beginning with 6 April in the year of assessment following that in respect of which the payment was made.
  • Where the application is for the tax year 1996 to 1997 or later - within five years beginning with 1 February in the year of assessment following that in respect of which the payment was made.
  • Where an application is made outside either of the above time limits it must be made within two years beginning with 6 April in the year of assessment following that in which the payment was made.

Time limit for refund of special Class 4 NICs paid in excess or in error

Regulation 110, paragraph 3, requires an application for refund of special Class 4 NICs paid in excess or in error to be made within six years from the end of the year in which the contribution was due to be paid.

Applications made after time limit has expired

Refund applications made after the relevant time limit has expired may still be allowed, but only where:

  • there is a reasonable excuse for not making the application with the time limit; and
  • the application was made without unreasonable delay after the excuse had cease