If you have more than one job, you might be paying more National Insurance than you need to. The good news? You could apply for a deferment to avoid overpaying!
National Insurance (NI) contributions are capped at an annual maximum, meaning if your combined earnings across multiple jobs are high, you might be paying more than necessary. Here’s how deferring Class 1 NI could help you keep more of your hard-earned cash.
What is National Insurance Deferment?
When you have multiple jobs, each employer deducts NI separately—without considering your total earnings across all jobs. This can lead to overpayments, especially if you’re earning above the Upper Earnings Limit (£967 per week for 2024/25 and 2025/26) in at least one job.
By applying for a deferment, you can reduce your NI contributions on your lower-earning jobs, meaning you’ll only pay the 2% rate instead of the full 8% on those earnings.
Who Can Apply for National Insurance Deferment?
You can apply for a deferment if:
- You have two or more jobs
- In one job, you earn at least £967 per week
- In another job, you earn at least £242 per week
If your earnings don’t meet this threshold in one job, you may still qualify if your total weekly earnings across jobs exceed the deferment criteria.
Here’s a breakdown of the minimum weekly earnings needed to qualify, depending on how many jobs you have:
| Number of Jobs | Weekly Earnings Needed for Deferment |
| 2 | £1,209 |
| 3 | £1,451 |
| 4 | £1,693 |
| 5 | £1,935 |
| 6 | £2,177 |
If your combined earnings meet the threshold, you can request a deferment for one or more of your lower-earning jobs.
Example: How Deferment Saves You Money
Jack has three jobs:
- Job 1: £800 per week
- Job 2: £750 per week
- Job 3: £400 per week
His total earnings from Job 1 and Job 2 are £1,550 per week, which exceeds the £1,451 threshold for three jobs. This means he can apply to defer NI on Job 3.
If his deferment is approved:
- Instead of paying 8% NI on his earnings above £242 per week in Job 3, he’ll only pay 2%, saving him money.
How to Apply for a National Insurance Deferment
If you think you’re overpaying National Insurance, you can apply online or by submitting form CA72A by post.
Key Deadlines
- Ideally, apply before the start of the tax year.
- Postal applications must be received by 14 February in the current tax year.
- If applying after 14 February, you’ll need your employer’s agreement for deferment.
If you miss the deadline and overpay, don’t worry—you can claim a refund after the tax year ends by writing to HMRC.
Need Help Reducing Your National Insurance Bill?
If you have multiple jobs, National Insurance deferment could save you money—but it’s important to get it right.
Not sure if you qualify? Jon and the team can help. Get in touch today to see if you’re eligible and ensure you’re not paying more than you need to!
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Any questions?
If you’d like a meeting or a video call to discuss this, please get in touch with your favourite Liverpool accountant
- You can ring us on 0151 380 8080
- You can email us at gr****@*********************co.uk