Deferring Class 1 NIC contributions

by CIGMA Accounting, posted in National Insurance

Employees with more than one job may be eligible to defer or delay paying Class 1 National Insurance in certain situations. This deferment can be considered if any of the following apply:

  • You pay Class 1 National Insurance to 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 two jobs combined over the tax year.

This deferral may allow for reduced NIC deductions of 2% on weekly earnings between £242 and £967 in one of your jobs, instead of the standard 8% rate.

At the end of the tax year, HMRC will review your National Insurance contributions and notify you if you owe NIC arrears.

Most self-employed individuals are also required to pay Class 4 NICs. While it was previously possible to defer these contributions, that option is no longer available. However, you may be able to claim a refund for past tax years.

Source:HM Revenue & Customs | 14-10-2024
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CIGMA Accounting
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