Where an employee has more than one job, they may be able to defer the payment of Class 1 National Insurance contributions in one or more of those jobs to ensure that the contributions that they pay for the year do not exceed the annual maximum.
If earnings in one job are at least equal to the upper earnings limit, the employee will pay primary contributions on that job at the main rate on all earnings between the primary threshold and the upper earnings limit. Where this is the case, they only need to pay contributions at the additional rate of 2% on earnings from other jobs where these exceed the primary threshold. To prevent an overpayment from arising, the employee can apply for a deferment. A person with two jobs can make a deferment application if they earn at least £967 per week from one job and at least £242 per week from the other job.
Where a person has multiple jobs, it may still be possible to apply for a deferment where the earnings are less than £967 per week in all jobs if instead the earnings test is met. The earnings test is found by applying the formula:
UEL + (E – 1) WPT
Where UEL is the weekly upper earnings limit (set at £967 for 2024/25 and 2025/26), E is the number of employments and WPT is the weekly primary threshold (set at £242 for 2024/25 and 2025/26). The following table summarises the earnings criteria for between two and six employments.Contributions can be deferred for any jobs not taken into account in reaching the earnings criterion.
Number of employments | Weekly earnings needed for deferment to be possible |
2 £1,209 | |
3 £1,451 | |
4 £1,693 | |
5 £1,935 | |
6 £2,177 |
Example
Jack has three jobs. In job 1 he earns £800 per week, in job 2 he earns £750 per week and in job 3 he earns £400 per week. As his total earnings from job 1 and 2 of £1,550 per week exceed the earnings criterion of £1,451 for three jobs, he can apply for a deferment for job 3. If this is granted, he will pay Class 1 NICs at 2% on earnings in excess of £242 per week rather than at 8%.
A deferment application can be made online or by post on form CA72A. Ideally, the application should be made before the start of the tax year, although postal applications will be accepted if received by 14 February in the tax year. Where the application is received after 14 February but before the end of the tax year, it will only be considered with the agreement of the employers in respect of which deferment is sought.
If an application is made too late and contributions are paid in excess of the annual maximum, a refund can be claimed after the end of the tax year by writing to HMRC.
Deferring Class 1 National Insurance contributions - Go Figure Financial | Bookkeeping Services Manchester
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