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When and How to Defer National Insurance
If you work multiple jobs as an employee, you might pay more National Insurance than you need to. HMRC allows you to defer (delay) National Insurance payments on some of your jobs to avoid overpaying, and you'll settle any difference at the end of the tax year. This can help y...
Introduction
If you work multiple jobs as an employee, you might pay more National Insurance than you need to. HMRC allows you to defer (delay) National Insurance payments on some of your jobs to avoid overpaying, and you'll settle any difference at the end of the tax year. This can help you manage your cash flow by paying a reduced rate during the year.
What deferring National Insurance means
When you defer National Insurance, you pay a reduced rate of 2% on earnings from one or more of your jobs during the tax year, rather than the standard employee rate. This helps prevent you from paying more than the maximum amount of Class 1 National Insurance you're liable for across all your employment.
Class 1 National Insurance is what employees pay on earnings from employment. If you've overpaid by the end of the tax year, HMRC will calculate what you still owe and send you a bill for any shortfall.
Who can defer National Insurance
You can only defer if you're an employee paying Class 1 National Insurance with more than one employer and you earn above certain thresholds.
If you have 2 jobs, you need to earn:
- £967 or more per week from one job, and
- £242 or more per week in your second job
If you have more than 2 jobs, you need to earn:
- £1,209 or more per week from 2 of those jobs combined, and
- £242 or more per week in your other jobs
When HMRC approves your deferral, you'll pay the reduced rate of 2% on weekly earnings between £242 and £967 in one or more of your jobs (depending on how many you have), instead of the standard rate.
Self-employed workers cannot defer
If you're self-employed, you cannot defer Class 4 National Insurance contributions. However, you may be able to claim a refund for previous tax years if you've overpaid.
How to apply for deferral
You need to apply for deferral separately for each tax year.
To apply for the tax year running from 6 April 2026 to 5 April 2027, you must complete form CA72A and send it to HMRC. The guidance notes accompanying the form explain how to complete it.
Important deadline: HMRC must receive your application by 14 February 2027. This means you need to apply well before the end of the tax year you're applying for.
What happens after you apply
Once HMRC receives your application, they'll review it and may ask you to provide payslips as evidence of your earnings.
If your application is approved
HMRC will write to you and tell you:
- Which employer will be your 'main employer' — this is who you'll continue to pay standard Class 1 National Insurance with
- Which employers you can pay the reduced rate of 2% with
HMRC will also send a 'certificate of deferment' directly to the employers where you'll pay the reduced rate. This certificate instructs them to deduct National Insurance at 2% instead of the standard rate.
Your employers will not be told about your other jobs — HMRC keeps this information confidential.
If your application is refused
HMRC will write to you explaining why your deferral application was not approved.
When your circumstances change
If HMRC has approved your deferral, you must inform them if your situation changes. This includes:
- Any job ending
- Starting a new job
- Moving house
Reporting changes ensures you pay the correct rate of National Insurance across all your jobs. If you don't update HMRC, you might pay the wrong amount and face a larger bill (or refund) at the year end.
Settling up at the end of the tax year
After the tax year ends, HMRC will calculate whether you've paid enough National Insurance across all your jobs.
If you owe additional National Insurance, HMRC will write to you with the amount due. You'll need to send payment by cheque to:
National Insurance Contributions and Employer Office
HM Revenue and Customs
United Kingdom
BX5 5BD
Include the payment slip HMRC sends you. If you don't have the slip, send a letter with:
- Your name, address and telephone number
- Your National Insurance number
- The amount you're paying
Should you defer?
Deferring can help your cash flow by reducing what you pay during the year, particularly if you have multiple jobs with varying hours. However, remember that deferral doesn't reduce the total National Insurance you owe — it simply delays part of the payment until after the tax year ends.
You'll need to budget for a potential payment to HMRC after 5 April when they calculate your final liability.
Sources
This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.
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