A limit applies to the amount of National Insurance a person has to pay each year. If you pay too much National Insurance, it is possible to claim it back. This also applies to voluntary contributions which are made. There are various reasons why a person may have paid too much National Insurance.
If you have more than one job and the total earnings from all jobs each week amounts to £844 a week, you may have paid too much National Insurance. Anyone who is self employed and pays Class 2 National Insurance contributions may have overpaid if they have profits of £5075, which is the figure for 2010-11. If self employment ceases, it is possible to continue to pay Class 2 National Insurance contributions in error, and may be due to a refund.
Anyone is employed and self employed during the same year, may have overpaid on Class 1, 2 and 4 National Insurance contributions, but will be able to claim it back. When a person reaches state retirement age, they no longer have to pay National Insurance contributions, but it is possible for an employer to deduct contributions in error or if you are self employed, continue paying in error.
HMRC will usually notify you if you have paid more than £48.50 over the yearly limit for Class 1 or 2 contributions, or you can write to HMRC if you think you have paid too much. Class 4 contributions may be claimed back by completing form CA5610. If you believe that you have overpaid National Insurance contributions, or paid when you don’t have to, contact HMRC to claim a refund.
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