The Chartered Institute of Payroll Professionals
News On Line
It is a legal requirement for an employee to meet all their National Insurance contribution (NIC) liabilities in all of their employments, unless they have more than one job and expect to pay primary Class 1 NICs on earnings of at least:
• £967 each week (£4,189 each month) throughout the whole tax year in one job • £1,157 each week (£5,012 each month) throughout the whole tax year in two or more jobs
In these scenarios, the employee can request to defer paying a portion of their Class 1 NICs in any other job(s) they have, until HMRC can correctly calculate the amount of NICs due after the end of the following tax year.
The guidance incorporates information about the temporary increase to NI thresholds that will be implemented in tax year 2022/23. It explains that even if a class 1 deferment is granted, individuals will be required to pay class 1 NICs at the percentage of 3.25% on all earnings above the primary threshold.
Full details are available on GOV.UK.
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The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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