NIM01190 | Class 1 structural overview from 6 April 2003 to 5 April 2009: changes to the excess refund process from 6 April 2003

Regulation 52A of the Social Security Contributions Regulations (2001) (SI 2001 No 1004)

The introduction of an uncapped primary Class 1 liability on all earnings above the Upper Earnings Limit means that each contributor will have an individual maximum based on the level of their earnings, it will continue to be possible for a person to pay in excess of their prescribed maximum.

This is because where a person fails to apply for deferment (see NIM01180) for the tax years beginning 6 April 2003 to 5 April 2009 they will pay Class 1 NICs:

• at the main primary percentage (11%) on all earnings above the Primary Threshold, up to and including the Upper Earnings Limit in each employment

• at the additional primary percentage (1%) on all earnings above the Upper Earnings Limit in each employment.

Where this occurs, HMRC will continue to identify excess payments and will take any necessary action to invite a claim and refund the excess payment.