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A victory for sub-postmasters — and common sense! PETER ARROWSMITH reports that some may now be eligible for a repayment of National Insurance contributions
Key points
- The potential double charge to NICs.
- HMRC decide not to contest a case before the Special Commissioners.
- Sub-postmasters should consider whether to reclaim overpaid NICs.
- Can repayments only be claimed for two years?
Many Taxation readers especially those with sub-postmaster clients will know only too well the difficulties arising in respect of Class 1
and Class 4 National Insurance contributions since the early part of the 1990s.
The Post Office salary included in a self-employed sub-postmaster's accounts is paid after the deduction of Class 1 contributions but then (because it adds to the accounts profit or sometimes covers the remaining loss) gets subjected to Class 4 liability as well.
For many sub-postmasters the salary is above the Class 1 upper earnings limit (UEL) and so Class 4 contributions could always...
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