National Insurance

[Stumpy54321]

Last month my employer overpaid me. I don’t usually pay NI or Tax but last month I paid over £100 NI and £200 tax.
This month I have got back most of the tax but what do I do about the NI? I’ve looked online at the gov website but as the correct NI was deducted in relation to the pay, they don’t see it as an overpayment.
the mistake was my employers fault so I don’t see why I should be out of pocket

Has your pay been adjusted back to what it should have been, so has your employer “taken back” the extra they accidentally paid you and provided you with a new payslip?

Yes. Nothing on the payslip regarding NI just the tax rebate

So sorry, to be clear, your employer has issued you a new correct payslip showing the correct pay and has only paid you the correct amount you SHOULD have been paid, not the overpayment? X

@Stumpy54321 i am sorry to say that unlike tax NI doesn’t auto correct via PAYE. I think you will need to contact HMRC https://www.gov.uk/claim-national-insurance-refund

NI will have been calculated correctly on the amount you've been paid, so as far as HMRC are concerned there's nothing to be refunded. NI works differently to tax so if you breach the threshold in that month you'll pay NI even if you don't over the course of the year.

Your employer needs to roll back their payroll for the month you've been overpaid and correct it that way, otherwise it won't calculate a national insurance refund because it technically isn't due to be refunded. The software doesn't know it was an overpayment of salary. By rolling back they basically reverse their original payroll entries and then redo it correctly.

How much NI did you pay?

I think it's a HMRC job. My DM had to call them for something similar

I havnt got a ‘new’ payslip. I have one from this month that has the deduction for the overpayment , I effectively won’t get paid this month I will just receive the tax rebate.

I’m pretty sure your employer should have ‘rolled your pay back’ I.e. recalculated it for that pay period. Follow it up with them. It is their error to sort out.

Yes I understand that as the correct amount was paid in relation to the overpayment. But as this error was not any fault of mine I’m effectively £100 out of pocket

Just over £100. I do understand that HMRC won’t see it as an overpayment as the correct amount was paid in relation to the amount I got paid. But if it wants for the error I wouldn’t have paid anything that’s where I feel I’m out of pocket.

In that case there’s absolutely nothing HMRC can do.

Your employer has made the mistake therefore it is their responsibility to correct it properly. They need to essentially re-run the payroll for the pay period with the overpayment and correct it properly, issue a new payslip etc. Without that HMRC are not going to issue a refund of NI Contributions (which you have to apply for) because as far as they can see you have paid the correct amount for your pay received.

Yeah that’s what I understand as far as HMRC are concerned the correct amount was deducted that’s what I wanted answering as to where to go from here

You need to go back to your employer, they need to correct the situation before HMRC will be able to do any refund.