Understanding How to Defer Class 1 National Insurance Contributions

What is Class 1 National Insurance Deferment?

If you have more than one job, you may be able to defer paying Class 1 National Insurance contributions (NICs) on some of your earnings. This helps ensure you do not pay more than the annual maximum amount required by HMRC.

When you earn at least the upper earnings limit (£967 per week for 2024/25 and 2025/26) in one job, you pay NICs at the main rate (currently 8%) on earnings between the primary threshold (£242 per week) and the upper earnings limit. Any additional earnings beyond this limit from other jobs are charged at a reduced rate of 2%.

Deferment allows you to reduce the NICs rate on your secondary job(s) to 2% instead of the main rate, preventing overpayment.

Who Can Apply for National Insurance Deferment?

You can apply for deferment if:

• You earn at least £967 per week from one job and at least £242 per week from another job.
• Or, if you have multiple jobs and your combined earnings meet the earnings test.

The earnings test is calculated using the following formula:

UEL + (E – 1) WPT

Where:

• UEL is the upper earnings limit (£967 for 2024/25 and 2025/26)
• E is the number of jobs (employment)
• WPT is the weekly primary threshold (£242 for 2024/25 and 2025/26)

Earnings Threshold for Deferment (2024/25 and 2025/26)

You can request deferment for any job that is not needed to meet these earnings thresholds.

Example: How Deferment Works

Jack works three jobs:

• Job 1: £800 per week
• Job 2: £750 per week
• Job 3: £400 per week

Jack’s combined earnings from Job 1 and Job 2 total £1,550, which exceeds the required £1,451 for three jobs. This allows him to apply for a deferment for Job 3. If approved, he will pay 2% NICs on earnings above £242 in Job 3, instead of the usual 8% rate.

How to Apply for National Insurance Deferment

You can apply for deferment:

• Online through the official HMRC portal.
• By post using Form CA72A.

For the best results, submit your application before the start of the tax year. However, postal applications will be accepted if received by 14 February of the current tax year. If submitted after this date but before the end of the tax year, the deferment is only considered if your employers agree.

Missed the Deadline? You Can Claim a Refund

If you apply too late and overpay NICs, you can still request a refund after the tax year ends by writing to HMRC.

For more details and to access the application form, visit: www.gov.uk/defer-national-insurance

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