Limited companies can now claim Class 1A NI refunds

Date: 8th June 2011

Business owners who have purchased foreign holiday homes through limited companies could be entitled to National Insurance refunds, it has been suggested.

Accountancy software provider CCH has highlighted a recent amendment to legislation, which could see limited company owners claim back Class 1A National Insurance (NI) payments made in relation to such properties.

"Many people buy foreign holiday homes through limited companies, this is normally driven by local property law considerations, rather than tax considerations," the firm said.

"However before the change in the legislation in 2008 this could result in a benefit in kind arising on the shareholder/director and a consequent liability to class 1A NI arising on the company."

According to the CCH, an amendment made on March 17th this year to the Social Security (Contributions) (Amendment No 3) Regulations 2011, which was designed to align NI and income tax rules, could see a number of owners claimed some money back.

The news could encourage a number of business owners to seek the assistance of a specialty tax accountancy service in order to help with any claims.

Posted by Emily Smith