In Christine Bradley v HMRC [2021] TC08344, the First Tier Tribunal (FTT) found that Class 3 National Insurance Contributions (NICs) paid in error should be refunded by HMRC.

Individuals may pay voluntary Class 3 NICs to enhance entitlement to benefits such as the state pension. Payments must be refunded where they do not enhance the contributor’s entitlement to benefit at the time of payment.

Where contributions have benefited the contributor, an application for repayment can be made where the contribution was made as a consequence of an error. This does not extend to a change of heart or the benefit of hindsight.

The FTT allowed Ms Bradley’s appeal for repayment of the Class 3 NICs paid, finding that Ms Bradley:

As an error was made at the time of paying the Class 3 NICs, the FTT found that repayment should be made by HMRC under Regulation 52 of the Social Security (Contributions) Regulations 2001.

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Christine Bradley v HMRC [2021] TC08344

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