Previous HMRC guidance may have led some training providers to apply NICs incorrectly
HMRC has set out conditions for refunds of national insurance contributions following the repeal of special rules that treated as employees for NIC purposes certain lecturers, teachers, instructors or ‘those in a similar capacity’ in traditional educational establishments such as schools, colleges or universities who were not working under an employment contract.
The Social Security (Categorisation of Earners) Regulations 1978 were repealed with effect from 6 April 2012. ‘However, prior to repeal, it is possible that earlier published HMRC guidance may have led some training providers particularly in the vocational or recreational sector to incorrectly apply the regulations to payments made to trainers engaged under self-employment contracts. If the regulations were incorrectly applied, Class 1 NICs may have been accounted for and paid to HMRC in error. HMRC will now consider claims for the refund of any incorrectly paid contributions,’ the department said in Revenue & Customs Brief 28/12.
Previous HMRC guidance may have led some training providers to apply NICs incorrectly
HMRC has set out conditions for refunds of national insurance contributions following the repeal of special rules that treated as employees for NIC purposes certain lecturers, teachers, instructors or ‘those in a similar capacity’ in traditional educational establishments such as schools, colleges or universities who were not working under an employment contract.
The Social Security (Categorisation of Earners) Regulations 1978 were repealed with effect from 6 April 2012. ‘However, prior to repeal, it is possible that earlier published HMRC guidance may have led some training providers particularly in the vocational or recreational sector to incorrectly apply the regulations to payments made to trainers engaged under self-employment contracts. If the regulations were incorrectly applied, Class 1 NICs may have been accounted for and paid to HMRC in error. HMRC will now consider claims for the refund of any incorrectly paid contributions,’ the department said in Revenue & Customs Brief 28/12.
