A Look At The National Insurance Rebate

A Look At The National Insurance Rebate
Although contributions to the National Insurance are not considered as taxes, they are non-voluntary, and hence are generally considered to be related. Unlike taxes whose benefits are not directly linked to the contributions that you make, contributions to the National Insurance are meant to provide the funds that will contribute towards your pension. Sometimes, you can contribute finances to this scheme only for you to realize that you have overpaid. Under such circumstances, you are allowed to claim for the rebate. In this article, we are going to discuss some of the things that can lead to an overpayment to the scheme, and what you should do in order to get your money back.

Cases Of Overpayments And Wrong Payments

For you to qualify for a National Insurance Tax Rebate, you must prove that you have either made more contributions than you were supposed to, or you have made contributions that you were even not supposed to make in the first place.

The first thing that can lead to a situation whereby you end up overpaying your contributions to the National Insurance is when you have two or more jobs, and earned more than 844 pounds every single week, during the 2010 2011 tax year.

The second situation that may cause you to make an overpayment to the National Insurance is where you were contributing to class 2 National Insurance while you were self-employed, and continued to do so even after you stopped being self employed.

These two are just but a few examples of the causes of overpayments to the scheme. There are other reasons why these overpayments may be there, and it is advisable that you check with your accountant so as to get more specific advice.

What You Should Do

So, assuming that you have realized that you have made some overpayments to the scheme, what are you supposed to do?

Well, the first thing that you need to know is that the NI will normally contact you if they think that there is an anomaly. However, if you feel that you have made excess payments and you are yet to be contacted, you should notify the HM Revenue and Customs immediately. When you notify them you need to ensure that you have all the adequate information so that it does not turn out to be a back-and-forth communication. This way, you will get to have your well-deserved rebate very fast.

Want to learn more about National Insurance Tax-Rebate? Find out about this and much more at tax-rebate.org .

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