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Posted Mon, 19 Aug 2024 12:54:55 GMT by Zaphod Beeblebrox
Hello, Normally a person would pay National Insurance from their employment income before tax deductions, so this is from "before tax" income. However when paying voluntary national Insurance payments, these are sent by Bank transfer or similar from income that has already been taxed. Is it possible to claim back the tax that was paid on the income used to pay the voluntary National Insurance or are the voluntary payments calculated taking into account that income was already paid on that income. Hope this makes sense and a meaningful answer will be given. Thank you.
Posted Mon, 09 Sep 2024 08:40:38 GMT by HMRC Admin 21 Response
Hi Zaphod,
I am afraid that it is not possible to reclaim tax that has been paid on income subsequently used to pay NICs on a voluntary basis.
These are assessed at a ‘flat rate’ and they are a personal expense, it is an individual choice whether or not to make payment. 
Thank you.

 
Posted Mon, 09 Sep 2024 09:11:52 GMT by BellaBoo
Hi, not an Admin but you have misunderstand some fundamentals. NI is calculated on gross earnings while income tax is calculated on gross taxable earnings. The difference is normally under net pay pension contributions. If your pension is under net pay, your NI is calculated on 100% of your earnings before pension contributions are deducted but income tax is calculated after pension deductions (so you get tax relief on the pension but not NI relief). But you do not get tax relief on NI contributions whether you are paying employee NI or paying voluntary NI. So your belief that an employee saves tax when they pay NI is incorrect. It is calculated on gross earnings but NI contributions do not reduce gross taxable income. So you are not losing out :)

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