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Deferment of National Insurance Contributions

Although it is possible to make a deferment of National Insurance Contributions the law states you must meet all NIC liabilities as an employee in all employments.

If you have more than one job and expect to pay primary Class 1 NIC’s of at least:

  • £967 per week (£4,189 per month) throughout the whole tax year in one job
  • £1,157 per week (£5,012 per month) throughout the whole tax year in two jobs or more

you can apply to defer paying some of the Class 1 National Insurance Contributions in other jobs you may have. HMRC will calculate the correct amount of NIC’s due after the end of the tax year.

For example:

If, in the tax year 2022 to 2023 you:
• have 2 jobs
• expect to pay Class 1 NICs on earnings of at least the weekly
Upper Earnings Limit of £967 (£4,189 monthly), throughout
the whole tax year in one of these jobs
you can ask to defer payment in the other job.

If you have not paid enough Class 1 National Insurance Contributions in your main jobs you may have to pay further amounts for earnings in deferred employments.

Class 1 National Insurance Contributions (NIC’s)

Class 1 NIC’s are paid if:

  • You work as an employee in the UK
  • Your earnings exceed the Primary Threshold
  • You are 16 or over and under state pension age

How to apply for deferment

Providing you meet the requirements for deferment of National Insurance Contributions you can apply via post. Download the CA72A form, complete and post to:

Personal Tax Operations North East England HM Revenue and Customs BX9 1AN

It is recommended that the form reaches HMRC before the 6th April 2022 although it will be accepted until the 14th February 2023. If the form is sent after this date it will only be considered with the agreement of your deferred employers. This is because there may not be enough time for them to process it before running the year end payroll returns.

Once the form reaches HMRC they will consider the application before confirming which employer you will pay Class 1 NIC’s with and which employers you can defer with.

Deferring employers will be sent a deferment certificate asking them to deduct at the additional Class 1 primary percentage rate of 3.25% on all earnings above the 2022-23 Primary Threshold.

If HMRC do not allow you to defer they will write with an explanation.

Deferment of Class 1 National Insurance Contributions are not usually allowed in the year you reach State Pension age. It may be possible if you can show that maximum Class 1 NIC’s will have already been paid before you reach State Pension age.

Read State Pension information or contact AJR & Co Ltd for advice