Regulation 53 allows a refund only where:
This means that if a scheme is eventually approved, a refund can be made for the period for which approval is given if NICs have been paid in respect of payments to an unapproved scheme:
In May 2000, payments are made to an unapproved scheme prior to submitting an application for tax approval. NICs are due.
In September 2000, an application for tax approval is submitted and the scheme meets the key criteria for NICs purposes. No NICs are due.
In June 2001, the scheme receives approval backdated to May 2000. A refund is available for the period May to September 2000.
If the scheme had failed to meet the key criteria in September, a refund would be due for the whole period from May 2000 to June 2001 once approval was received.
The NICs which can be refunded in accordance with regulation 53 are refundable to the person or secondary contributor who paid them. The refund is subject to an application for refund being made within 6 years from the date from which the Board of Inland Revenue’s approval of the scheme operates.