I have been very lucky to meet a number of new clients since I started my business. Many are very computer literate and have been able to file their own Tax Returns using the HMRC form filling facility and without needing to use the services of a Tax Adviser. But time and time again, my detailed knowledge of the tax system has led to additional claims which can bring about real tax savings.
One of the main areas of overpayment often relates to National Insurance .
There are four main types of National Insurance: Class 1 is payable by employees and employers, Class 2 is a flat rate payable by the self employed, Class 3 is voluntary contributions paid by people who want to complete their National Insurance record for benefit purposes, but are not otherwise liable to pay National Insurance, and Class 4, which payable on profits above a set level by the self employed.
National Insurance, unlike income tax, is only payable by people who are 16 or over and under the state pension retirement age.
It is possible to overpay National Insurance. This may happen, for example:
- if you pay Class 2 National Insurance as a self-employed person and later find that your profits were below the small earnings limit,
- if you have paid National Insurance after reaching the state pension age,
- if you are highly paid and have more than one employment or are employed and self-employed on high earnings.
There are different time limits for applying for refunds, depending on the sort of National Insurance and the reason for the overpayment. But if you think you might be paying too much National Insurance and would like to discuss this in more detail, please do not hesitate to contact me.