Class 1 and class 4 NIC - overpayment?

Dottie Registered Posts: 99 💫 🐯 💫
My client is both employed and self-employed. How can I work out if he has paid too much in class 4 nic and how do I claim a refund?

Many thanks!



  • deanshepherd
    deanshepherd Registered Posts: 1,809
  • Dottie
    Dottie Registered Posts: 99 💫 🐯 💫

    He has overpaid! Many thanks for your help. Dottie
  • Monsoon
    Monsoon FMAAT, AAT Licensed Accountant Posts: 4,071 🎆 🐘 🎆
    Dean thank you!
    This just came up for me today.

    I've never really looked into this before (never needed to) and I've worked through the calculation but am not sure I've done it right.

    In Cases 1 and 2, surely the values of a) and c) are the same as that actually paid? Or have I missed something?

    Do you even need to do it at all if profits are under the UPL?

    Not often I'll post a technical question but I'm a little confused on this one.

    Thanks :)
  • Dottie
    Dottie Registered Posts: 99 💫 🐯 💫
    My client has paid too much NIC and I completed the form for HMRC twice (they lost the first one!).

    However, my client is on a budget plan to pay his self-assessment bill and therefore has not paid all his tax and NIC for the year. I thought HMRC would just reduce his liability, however I have received a letter back saying that no action can be taken until the account has been cleared. So, he has to pay interest on the overpaid amount and then ask for a refund?!

    Has anyone else had any experience with this?

    Thanks as always.

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