October 26th, 2012 / Insight posted in

Don’t pay too much national insurance

JH writes: I have two part-time jobs that are salaried and I also run my own business, for which I am treated as self-employed. My concern is that national insurance contributions are charged on my two jobs and again on my profits. Am I paying too much?

A separate liability arises in respect of each of your jobs and also your self-employment. But if it is clear that the total contributions paid in any one year in relation to your employments (not self-employment) will exceed your maximum annual liability (currently £2,300), your contributions may be deferred. Where both employment and self-employment are involved, the rules for calculating the amount payable are complex but it should never exceed £2,300 a year. If you believe you are entitled to defer some payments, contact the Contributions Deferment Group. You need to complete form CA72A for deferment of contributions from employment and CA72B for self-employment. Both forms can be obtained from the Contributions Agency Deferment Group, Longbenton, Newcastle Upon Tyne, NE98 1YX. Deferment is usually given only where an application is made before February 14 ahead of the tax year for which deferment is requested. If your application is accepted, a certificate allowing one of your employers to defer the deductions will be sent to the employer, or you will be notified that you can defer payments from your self-employment. If payment cannot be deferred you should apply for repayment of the excess contributions. This must be done within five years of January 31 following the tax year in which the excess was paid. Apply to the Refunds Group at the above address.