Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Class 1 NIC deferral

13 August 2019 / Linda Pullan
Issue: 4708 / Categories: Comment & Analysis
Don't delay

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...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon