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Deferring national insurance payments

Deferring National Insurance payments

16 May 2024

Employees with more than one job may be able to defer or delay paying Class 1 National Insurance in certain circumstances.

In certain circumstances, employees who hold more than one job can defer or delay the payment of Class 1 National Insurance.

This deferment can be considered when any of the following apply:

  • You pay Class 1 National Insurance with more than one employer.
  • You earn £967 or more per week from one job over the tax year.
  • You earn £1,209 or more per week from 2 jobs over the tax year.

This deferral might reduce your NIC deductions to a rate of 2% on your weekly earnings between £242 and £967 in one of your jobs, instead of the standard rate of 8%.

At the end of the tax year, HMRC will verify whether you have paid enough National Insurance and will contact you if you have underpaid contributions.

Most self-employed people must also pay Class 4 NICs. Although it was once possible to defer these contributions, this is no longer the case. You might be eligible to claim a refund for previous tax years.

It’s important to note that the process of deferring National Insurance contributions is not automatic. Employees who meet the criteria and wish to defer their contributions must apply to HMRC for a deferment. The application should be made before the start of the tax year for which the deferment is sought. If approved, HMRC will issue a deferment certificate which the employee must provide to their employers. This certificate will instruct the employers to deduct National Insurance at the deferred rate. Remember, staying informed and proactive about your National Insurance contributions can help ensure your financial obligations are met and your rights are protected.

Source: HM Revenue & Customs Tue, 14 May 2024 00:00:00 +0100

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