Where to file a claim

[D. Cheng]

I have problem with my ex employer who had been deducting my N.I. Contributions after I had reached retirement age, for 8 years. When I decided to retire and I was told that such deduction was an error. A refund of 6 years' contributions was made leaving 2 tears balance. I have exhausted the internal process before my retirement. ACAS advised me that the deduction is technical lawfyul and advised me to pursue under the civil small claim route. I am thinking of taking the matter under a small claim route. Limitation Act should not apply as I was only aware of the fact that N.I. contributions are not applicable in April 2025.
I live in Essex and their head office is in London, where should I file the claim.

[PallasAthena]

Approximately how much is owing?

[ULA]

Am I right that in summary you carried on working past state pensionable age for 8 years and during that time your employer continued deducting NI contributions from you as once you reach State Pension age, you should not have any Class1 employee National Insurance (NI) deducted from your salary.

From whom did you get the refund of 6 years' contributions - your employer or HMRC?

[D. Cheng]

I have problem with my ex employer who had been deducting my N.I. Contributions after I had reached retirement age, for 8 years. When I decided to retire and I was told that such deduction was an error. A refund of 6 years' contributions was made leaving 2 tears balance. I have exhausted the internal process before my retirement. ACAS advised me that the deduction is technical lawfyul and advised me to pursue under the civil small claim route. I am thinking of taking the matter under a small claim route. Limitation Act should not apply as I was only aware of the fact that N.I. contributions are not applicable in April 2025.
I live in Essex and their head office is in London, where should I file the claim.

The amount is slightly over £3000. The refund was made to me via the PAYE system when I was still employed.

[ULA]

So there is £3,000 still outstanding which your employer has not refunded.

If your employer had not made any refund then HMRC normally allows claims to be made direct to them going back up to 6 years, but NI overpayments due to employer error can sometimes be corrected for longer periods depending on circumstances. It may well be worth contacting HMRC, explain the situation and see if you can pursue a claim for the 2 years you have not been refunded. They will probably require payslips or P60 showing the NI deductions if they will let you claim the 2 years.

By any chance did your employer state why they would only refund 6 years?

[D. Cheng]

Thank you for your kind assistance. I have contacted HMRC and they said no knowledge is not valid reason for refund. I have further written to them citing the Social Security Contributions and Benefit Act 1992. I have sent further letter and they did not respond dispute reminders sent. Therefore it seems that I have no other alternatives but to hold my ex employer liable under the Employment Rights Act 1996. That is why I have to find out where to serve the summons.

[D. Cheng]

So I intend to bring an action against my ex employer under the small claim route. I wonder where to file the claim. Can anyone kindly help. Thanks.

[ULA]

You need to be aware that if you make a small claim via Money Claims Online (linked to below), there is a 6 year limit from the date the cause of the action occurred for a claim for breach of contract (your employment contract + statutory obligations).

https://www.moneyclaim.gov.uk/web/mcol/welcome

You say you were owed NI overpayment for 8 years, however you have been refunded 6 years, so I am not sure if you would have a claim.

atticus can you advise on the limitation issue please.

[atticus]

I am not sure that I can add to the OP's knowledge of this. The question may not be when the OP learned that the deductions should not have been made, but whether he could or should have been able to find this out earlier.

Can the OP argue that the repayment relates to older years, leaving the more recent period still outstanding? There is a rule relating to running accounts, such as bank current accounts, that repayments clear the oldest debts first.

[D. Cheng]

I am not sure that I can add to the OP's knowledge of this. The question may not be when the OP learned that the deductions should not have been made, but whether he could or should have been able to find this out earlier.

Can the OP argue that the repayment relates to older years, leaving the more recent period still outstanding? There is a rule relating to running accounts, such as bank current accounts, that repayments clear the oldest debts first.

Thank you guys for the kind assistance, it appears to me that the Limitation Act would allow me to file a claim, as per below :

31(1)(c)the action is for relief from the consequences of a mistake;

the period of limitation shall not begin to run until the plaintiff has discovered the fraud, concealment or mistake (as the case may be) or could with reasonable diligence have discovered it.

As I only discover the mistake from the date I indicated my wish to retire in April 2025.

In relation to the issue of finding it earlier, I was employed by my ex employer afte early retirement and had been working in other agencies, N.I. contributions had always been deducted and I truely believed that it was correct for them to keep deducting it from my salary.

This will all be in the claim but I just do not know where to file the claim given the ex-employer is based at London and I live in Essex. Grateful if you can assist further.

Many thanks.

[atticus]

OK - but what about the words highlighted in bold below? Be ready to deal with that argument.

the period of limitation shall not begin to run until the plaintiff has discovered the fraud, concealment or mistake (as the case may be) or could with reasonable diligence have discovered it.

File the claim in your nearest County Court hearing centre.