Are you experiencing national insurance overpayments?
If you’ve found yourself wondering whether you’re paying more than necessary in NI, the term national insurance overpayments should sit front and centre.
Whether you’re employed, self-employed, or have multiple income streams, there’s a risk you could be paying more than you need to — and that means you could be entitled to reclaim those overpayments.
What counts as national insurance overpayments and why they happen
When you pay contributions to HM Revenue & Customs (HMRC), you may inadvertently pay more than the correct amount if, for example:
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you have two (or more) jobs/employments and your combined earnings push you past certain thresholds;
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your salary fluctuates and you cross thresholds mid‐year;
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in a business or self‐employment context, you miscalculate your NICs;
In such cases, the outcome is essentially national insurance overpayments — contributions that could have been avoided or reduced.
How the 2025/26 tax year affects national insurance overpayments
For the 2025/26 tax year there are important updated thresholds and rates:
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The Primary Threshold (PT) is £242 per week / £1,048 per month / £12,570 per annum.
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The Upper Earnings Limit (UEL) remains at £967 per week / £4,189 per month / £50,270 per annum.
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Employee (primary) contribution rates for earnings between PT and UEL: 8%, and above UEL: 2%.
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Employer (secondary) threshold is dramatically lower: just £96 per week / £417 per month / £5,000 per annum, and the employer rate on earnings above this is 15%.
These changes are relevant when considering national insurance overpayments — especially if you earn via multiple sources or have multiple employers or are self-employed.
Who is most at risk of national insurance overpayments
Multiple employments or employment + self-employment
If you hold more than one job, or a job plus self-employment income, your combined earnings may push you across thresholds in a way that causes unintended NIC liabilities — and consequently national insurance overpayments.
Directors and companies or businesses
If you pay yourself a salary from your own company (as a director) the choice of salary level may trigger employer NICs and personal NICs — mis-structuring can lead to unnecessary contributions and hence national insurance overpayments.
Self-employed individuals
For the self-employed, you pay Class 2 and Class 4 NICs; mis-judging profits, threshold crossings or deferring elections may lead to paying more than necessary and therefore national insurance overpayments.
How you can check for national insurance overpayments
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Review your payslips and tax code notices: check the NI contribution bands and ensure the correct earnings thresholds have been applied.
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For more than one employment, ask whether contributions are being duplicated and whether one employer should defer.
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In self-employment, review your profits relative to the Lower Profits Limit (£12,570 for 2025/26) and upper limit (£50,270) to ensure you’re paying the correct rate.
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If you suspect an overpayment, you can approach HMRC for recovery. But crucially, you must act promptly to avoid losing the opportunity to claim.
Options if you’ve made national insurance overpayments
Defer employer contributions where applicable
If you have multiple employments, you can ask for a deferment certificate to apply to the secondary employment so that employer contributions stop being deducted prematurely — thereby reducing the risk of national insurance overpayments.
Claim a refund or adjustment
If you realise you have already over-paid, you may be able to claim back contributions. Generally, you can go back six years for a refund of over-paid NI contributions.
Adjust salary/dividend mix (for directors)
For company directors, consider whether the salary level is optimised to avoid unintended employer NIC burdens (which ultimately can lead to national insurance overpayments) while still meeting the Lower Earnings Limit for pension etc.
Key tips to minimise national insurance overpayments
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Keep pay structures and income sources under review: multiple income streams increase complexity.
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Make sure your payroll/employer is aware of all your jobs so that the correct contributions route is followed.
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In small companies, monitor how director salary decisions interact with employer NICs and self-assessment to avoid unwanted overpayments.
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Remember that passing the Upper Earnings Limit means you pay a lower rate of NIC (2% above UEL for employees) — so once you cross that threshold your marginal NIC drops; that knowledge helps when estimating whether you have overpaid.
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Ensure you claim any available relief: for example, for small businesses the employment allowance is increased (affecting employer NICs) which indirectly reduces the chances of national insurance overpayments by employers.
How Trueman Brown can help with national insurance overpayments
If you believe you might have incurred national insurance overpayments or you simply want to structure your pay and business income more efficiently, Trueman Brown can help.
Our services include:
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A full review of your employment income(s), salary, and self-employment profits to assess whether NI contributions are correctly being calculated.
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Assisting in preparing applications for deferment certificates (for multiple employments) to stop employer NICs being over-paid.
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Preparing and submitting claims for refund of over-paid contributions to HMRC where appropriate.
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Advising directors and small companies on optimal salary/dividend mix, and how employer NIC changes from 2025/26 affect you. To discuss your individual circumstances and explore whether you may be due a refund or can avoid future overpayments, please contact us: mark@truemanbrown.co.uk or call us on 01708 397262. Let’s make sure you’re not paying more than you need to in NI.
Frequently Asked Questions (FAQ)
Q: What counts as a national insurance overpayment?
A: If you pay contributions that you should not have had to (or at a higher rate than necessary) because your income has been incorrectly treated (for example from multiple employments), this is a national insurance overpayment.
Q: How far back can I claim for national insurance overpayments?
A: Generally, you can claim for up to six years of over-paid contributions, depending on your circumstances and type of NIC.
Q: Does having two jobs automatically mean I’ve paid too much NIC?
A: Not automatically. But if you have two jobs and both are treating you as if you will only pay one set of NICs, you might end up paying more than necessary. A review is advisable to check for potential relicensing of contributions.
Q: Are the changes for 2025/26 relevant to refunds of past overpayments?
A: Yes. The new thresholds and contribution rates (for example PT at £12,570, UEL at £50,270, employer secondary threshold at £5,000 at 15%) mean that your liability may have shifted. That in turn affects whether you have overpaid in previous years or whether your structure is optimised going forward.
Q: I’m self-employed — can I still have national insurance overpayments?
A: Yes — if your profits are mis-quoted, or if you pay too much Class 2 or Class 4 NICs because thresholds or profit estimates were wrong, you may have a national insurance overpayment to claim.
Q: When should I contact Trueman Brown about this?
A: If you suspect you’ve paid too much NI, have multiple income sources, or you’re a director/company owner wondering whether your salary/dividend mix is optimised — contact us at mark@truemanbrown.co.uk or call 01708 397262 to find out how we can help.
Don’t leave potential refunds or savings unclaimed. Make sure you’re properly protected against ongoing overpayments — and if you think you might be in line for a refund, contact Trueman Brown now.