At Marlow & Co, Exeter we can guide you through the complex issue of National Insurance.
National Insurance Contributions are there to cover you in the event of something going wrong. Making sure that you pay enough is important, but nobody wants to pay too much. The most common cause of an overpayment of NIC is when you take income from two or more jobs, especially if one is self employment on top of being employed. The upper limit is based on your annual earnings between the lower threshold for contributions and the upper earnings limit, plus one per cent on earnings above this. This may sound complicated, but the actual calculations are quite easy to do. If there is a chance that you will go above the limit, then you can apply for a deferment of contributions. Essentially this means that you can put off paying extra NICs until after the end of the tax year so that you can correctly calculate how much you have to pay. |
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To get a deferment, you have to apply to the deferment group. They do recommend that applications for deferment are made at the start of the tax year, but you can make an application up to February in the tax year if your situation changes. Once the tax year ends, the deferment group will calculate your contributions collect any outstanding monies that may remain payable.
Obviously your situation may change, or you may not be aware of this until after it is too late to apply for a deferment. You are able to claim a refund on overpaid NICs up to six years after the end of the relevant tax year.
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