Key points
- Deferment of class 1 contributions can be claimed by employees with more than one employment.
- The employee’s earnings must exceed specific limits.
- Grant of deferment will reduce the employee’s in-year National Insurance contributions on some earnings.
- Employers should deduct employee contributions at the reduced rate only if they have a deferment certificate.
- A deferment application must be made by 14 February in the tax year.
- HMRC will notify employees of any shortfall arising as a result of the deferment.
The option to defer payment of National Insurance contributions has been around for many years but there is little mention of it in HMRC’s CWG2: EmployerFurther Guide to PAYE and National Insurance nor of its distinct advantages to specific employees and directors. However those who are willing to dig a little deeper can find more detail in the National Insurance Manual.
Individuals may have the right to defer their National Insurance contributions if they have...