Why can't you claim back overpaid NI class 1 contributions?

[GintyMarlow]

I work on a sporadic basis but in my main job which I do every few months, I earn a good daily rate. This means that I earn well above the NI threshold for a couple of months a year.

Overall I earn about £7,500 a year so should pay less NI than I end up paying. I also pay too much tax as my tax codes are for the year and on a monthly basis I earn more than that in the months I work, but I can claim that back at the end of the year. So why can't you claim back the NI?

I have entered into discussions with the Inland Revenue who say that it has been calculated correctly, which is has. I am just frustrated at the anomoly where you can claim back income tax and not NI contributions.

Anyone know why this is? I am an accountant but somewhat resting at the moment and anyway we were never told about this in our studies

You can. I work for 2 people and both take ni. Over a certain amount you only pay 1 per cent. Each year I get a rebate and have to pay extra tax as only one takes 40 per cent.

You fill in a simple form and get a cheque. 1st time indid it theybsent me one u requested for previous 2 years as well and so got £700 odd.

Got last one in summer this year

I think as it is only for one employer at a time and it is correctly calculated (assuming I worked at that level for a whole year) that I can't claim it back. Or that it what the IR said when they wrote back to me.

You don't happen to remember which form you filled in do you? Looking at the HMRC website it looks like you may have been earning more than £844 a week, where there is a limit on the amount you can pay. Sadly although I earn a good daily rate, it's not quite that good (as it is done for the month and I only do about 10 days so average is less than that).

Class 1 contributions are worked out on a weekly basis I believe, rather than yearly like class 2 (in terms of getting an exemption) and class 4. Therefore if what you've been paid takes you over the threshold in a particular week, then you have to pay the contributions even if on average over the whole year you're below it. Does that make sense?

see here

I don't think you'll be able to. As daisysteiner says NI deductions are based on the particular week or month whereas tax is cumulative so if you overpay at the end of the year you are able to claim a refund.

Thank you - it does make sense but still frustrates me .

Must see about class 2 ones I overpaid when I thought I was going to do more self employed work than I do (have an exemption now(. Wonder how far back you can claim those for?

I was made redundant at start of maternity leave nad my SMP was paid in one lump sum. I paid too much Ni because it was calculated in one go instead of being spread over 26 weeks. The Ni on £120 pw is almost nothing but on 26 x £120 £3120 all at once...I wrote to the Ni office and was told all was correct. I did not seen fair to me but Hey Ho

what is fair about tax? the rules are the rules are the rules - based on statue and case law. Some of them "make sense" others make no sense as all, but they are as they are.
As an accountant you will be more than aware of that fact.
So yes - be fed up with the fact, but the only answer as to why will either be based on the historical development of NI or "that's how it is"