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National Insurance Deferment - have you got two jobs?

National Insurance is increasing as announced by the Chancellor in September, so it is important you do not pay too much if you have more than one employment including within your own limited company.


In circumstances where you do have more than one employment, a deferment may be applied to ensure you do not pay too much National Insurance once you reach the upper earnings threshold in your main employment. The difference is significant; between 12% (soon to be 13.25%) and only 2% (3.25%), so it is important you complete and submit the relevant form.


There are two ways to submit the form as follows:


1 By post


Please find attached an application form to apply for deferment of Class 1 National Insurance contributions for the year 2021/2022. Complete the details on this form to provide estimates for the fiscal year 2022 in terms of employment earnings then sign and date it on page 3.


Please then return it direct to the NI Office at the following address:


Personal Tax Operations

North East England

HM Revenue & Customs

BX9 1AN


2 Electronically


This is the easiest and most efficient way to submit the form because HMRC have a waiting time for dealing with correspondence in excess of 90 days currently.


Set up a digital tax account. This is easy to do and should take no more than a few minutes. Setting this up not only allows you to complete this deferment but it provides access to your National Insurance record, tax code, returned earnings from your employer for previous tax years, AND it will in future be essential for the digitisation of tax.


Before you start you will need:


· A copy of your passport or driving licence

· National Insurance Number or Unique Taxpayer Reference

· Some answers to a few questions including with which bank you have a mortgage; when you took out your last mobile contract (a choice of last 12 months, 1-3 years, etc.), or similar. You have five attempts at the questions – do not give up!


This is the link:


https://www.gov.uk/personal-tax-account


You will be asked to give HMRC details of all employments for the tax year, including:

  • Employers’ names and payroll address (the trust address from the payslip)

  • PAYE reference (you can find this on your P60 or on a payslip)

  • type of contribution payable (for example ‘A rate’ this will also be on your P60)

  • estimated annual earnings for the year for which you are applying (fiscal year ending 5 April 2022)

  • the date you left the employer, if you no longer work for them.


You can then track this form in your personal tax account. Should you require assistance we are available to help but the application has to be completed by you.


NI Form
.pdf
Download PDF • 43KB


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