Deferment of National Insurance contributions

By law, you must meet all National Insurance contributions liabilities; both as an employee and as a self employed person. However, if you are an

  • employee and you pay Class 1 contributions with two or more different employers
  • employee paying Class 1 contributions as well as Class 2 and/or Class 4 contributions

You may be able to defer some of your contribution liability. If your earnings from your separate employments exceed the Upper Earnings Limit (UEL) you may avoid paying too much National Insurance and remove the need for a refund.

Deferment can only be issued for one tax year at a time, though renewal is invited annually by Deferment Group. It is not normally allowed for the tax year in which you reach State Pension age (currently 60 for women and 65 for men).

If you are granted Class 1 deferment, you will still be required to pay Class 1 National Insurance contributions at a rate of 1% on all earnings above the earnings threshold in all of your deferred employments.

Where no deferment application is made and Class 1 or Class 1, 2 and 4 contributions are paid in excess of the annual maximum, a refund can be claimed by applying to:

HM Revenue and Customs
National Insurance Contributions Office
Refunds Group
Longbenton
Newcastle upon Tyne
NE98 1ZZ

Please see further information about refunds

How to apply

To apply for deferment either complete the application form:

2009-2010

2008-2009

Or contact:

HM Revenue & Customs
National Insurance Contributions Office
Deferment Services
Longbenton
Newcastle upon Tyne
NE98 1ZZ.

You should send your completed form to Deferment Services as soon as possible before the start of the tax year in which you want to defer payment.

A list of Frequently Asked Questions is available should you require them.