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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15946
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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as self employed paid NI contributions for 43 years.have I

Resolved Question:

as self employed paid NI contributions for 43 years.have I overpaid ?
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.

Hi.

What makes you think you may have overpaid your NI contributions? Have you always been just self-employed and not self-employed and employed at the same time? Can you tell me your date of birth please.

Customer: replied 3 years ago.

Thank you for your reply. My date of birth is 28/02/51. For the first 8 years of my working career i was employed. For the rest of my career i was SELF employed only.

Customer: replied 3 years ago.

Thank you for your reply. My date of birth is 28/02/51. For the first 8 years of my working career i was employed. For the rest of my working career i was SELF EMPLOYED ONLY. I have paid N.I contributions for 43 years. Have i overpaid?

Expert:  TonyTax replied 3 years ago.
Thanks.

Leave this with me while I draft my answer.
Expert:  TonyTax replied 3 years ago.

Hi again.

When you were employed, you would have paid Class 1 NIC and this would have been deducted from your salary or wages by your employer.

As a self-employed individual, you would have been liable for the flat rate Class 2 NIC which is currently charged at £2.75 per week if your self-employed earnings are at least £5,885 per annum. You would also have paid Class 4 NIC with your tax. This is currently charged at 9% on profits between £7,956 and £41,865 per annum and at 2% on profits over and above £41,865.

I cannot possibly tell you whether you are overpaid on your NIC as I don't have access to your payment record. However, it is very unlikely that you are overpaid as your Class 4 NIC is worked out with your tax so it is reliant on the submission of accurate figures in your tax returns. As a self-employed man who will be 65 on 28 February 2016, the last tax year you should pay NIC for will be the 2015/16 tax year assuming you don't stop working before then. At that point, you will be entitled to your state pension. Take a look here for more information.

The procedure to follow if you wish to learn if you have paid too much NIC is set out here. If you were employed and self-employed at the same time or you had two jobs at the same time, there is no time limit for a claim. If you have overpaid for any other reason, you can only go back to 2008/09 and any claim for that year needs to be made by 5 April 2015.

I hope this helps but let me know if you have any further questions.

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