The word ‘error’ as used in the context of Class 1A NICs refund legislation means an error which
A refund arising from an error can only be made if the
contributions were paid as the result of an error which caused a
miscalculation at the time Class 1A NICs were calculated. The error
must also relate to something which occurred before the date by
which payment of Class 1A NICs must be made.
Examples of the type of refund arising from an error include
Where an employer alleges that Class 1A NICs have been
incorrectly calculated because of incorrect advice given by a
Government Department, obtain full details of the advice. If the
case is not justified, tell the applicant. If the case is justified
and misdirection is accepted, explain to the applicant that a
refund is due.
Most refunds arising from an error will occur because of an incorrect calculation made in relation to a specific benefit. Two examples of typical errors are
If, however, when calculating the amount of Class 1A NICs due an employer simply forgets to take into account a payment the employee made towards the cost of the benefit and, as result, overpays Class 1A NICs, a refund can be made.