Isle of Man National Insurance Refund Scheme for Returning Graduates

The Isle of Man offers a unique opportunity for students who have studied abroad and returned to the Island to live and work. Under the National Insurance Refund Scheme, eligible graduates may be entitled to a refund of their Class 1 National Insurance contributions, providing financial relief as they settle into their careers.

Who Qualifies for the Refund Scheme?

The National Insurance Refund Scheme applies to Isle of Man students who meet the following criteria:

1.        Successful Completion of a Full-Time Course Abroad
The individual must have successfully completed a full-time course of education outside the Isle of Man for:

·          A university first degree

·          A Higher National Diploma (HND) or a comparable course

·          A postgraduate course

The course must have been completed on or after 6 April 2019. The graduation date must be after this date for eligibility. Students who graduated before 6 April 2019 but do not return to the Isle of Man until after this date, are not eligible for a refund.

2.        Returning to Live and Work in the Isle of Man
After successfully completing the course, the graduate must return to the Isle of Man to live and work. To qualify for the refund, the graduate must commence permanent employment within 5 years of completing their course. The employment must meet the following conditions:

·          The person must have worked in permanent employment for a period of more than 12 consecutive months.

·          The employment must be with an employer who is Isle of Man resident for National Insurance purposes.

·          The employment must have no predetermined end date and be expected to continue indefinitely, as defined by permanent employment.

What Doesn’t Qualify?

There are several situations where a graduate would not qualify for the refund:

·          Distance Learning and Flexible Learning Courses: Students who undertook a course of distance learning or flexible learning do not qualify for this scheme.

·          Isle of Man University College Students: Students who have completed courses at the Isle of Man University College are not eligible for a refund.

Refund Details:

Once a graduate meets the criteria for permanent employment in the Isle of Man for over 12 consecutive months, they can apply for a refund of their Class 1 National Insurance contributions paid as an employee during that period. The refund will be for contributions made up to a maximum amount of £4,400.

It is important to note that the contributions refunded under the scheme will still be considered as paid for all other National Insurance purposes. This means that the refund will not affect the individual’s entitlement to other benefits or contributions.

How to Apply:

To apply for a refund, form R247 – Application for the National Insurance Holiday Scheme should be completed and submitted to the Income Tax Division.

Eligible applicants can submit their claim after the end of the 12-month period to which their claim applies. You must apply no later than six months from this date. Early submissions will not be accepted.

To streamline the process, please be prepared to provide supporting documentation. This includes copies of your employment contract, and pay slips relating to the claim period. New residents, may also be required to provide proof of their residency commencement on the Isle of Man, such as travel documents or rental agreements. Returning students will be required to provide evidence of completed educational courses.

Only one refund is allowed per person, and the employer must be an Isle of Man resident for National Insurance purposes.

For more detailed information on how to apply see, contact the Income Tax and National Insurance Division Team.