In some circumstance which we detail below, an employee can apply to defer paying Class 1 National Insurance. For tax year 2019/20 this only applies in the following situations:
- National Insurance is payable in more than one employment
- Earnings are over £962 per week, (£4,167 each month) throughout the whole tax year in one job
- Earning are over £1,128 each week, (£4,886 each month) throughout the whole tax year in 2 or more jobs
The application is done via the HMRC form CA72A. What deferment means is that the maximum amount of earnings are paying National Insurance at the highest rate in one employment therefore, there is no requirement to pay at the maximum rate in other employments. This could be because the employee has two or more jobs. This is not an automatic process and employees have to make an application for deferment each tax year. Just because deferment applies in one tax year does not mean that it automatically carries over to the next as the application lasts for one tax year only.
See general guidance about deferment on gov.uk but note that the rates on the page apply to 2018/19 and not 2019/20.
There are two ways in which an employee can make an application for a deferment certificate that they will then have to give to their employer / employers:
- Online via the Government Gateway using the ID and password
- By post or hand using the CA72A pdf form
In both ways, the employee can ask that HMRC deal with an agent / third party as long as they have signed a 64-8 “Authorising your Agent” form. This can also be done online. The 64-8 can be sent at the time of the application or beforehand.
HMRC have produced a useful set of guidance notes for the completion of the CA72A for 2019/20, either using the online application of the pdf form.
Global Payroll Association Comment
Employees are reminded that they need to send the form CA72A before the 14th of February 2019 in order for HMRC to issue the deferment certificate in time to give to the employer before the start of the tax year.
HMRC will consider issuing the deferment certificate after the 14th of February 2019 up to the 5th of April 2020. But this will only be with the agreement of the deferred employer. The reason for this is that HMRC may not have time to process and / or the employer may not be able to give refunds of the overpaid National Insurance through the payroll.
Employees that are eligible for deferment but do not apply for the certificate in time may be entitled to a refund of the overpayment but that will involve writing to HMRC. See the guidance notes for the address (which also applies for deferments for previous tax years).
The 14th of February 2019 is a crucial date for employees wishing to get deferment.
In some circumstance which we detail below, an employee can apply to defer paying Class 1 National Insurance. For tax year 2019/20 this only applies in the following situations:
- National Insurance is payable in more than one employment
- Earnings are over £962 per week, (£4,167 each month) throughout the whole tax year in one job
- Earning are over £1,128 each week, (£4,886 each month) throughout the whole tax year in 2 or more jobs
The application is done via the HMRC form CA72A. What deferment means is that the maximum amount of earnings are paying National Insurance at the highest rate in one employment therefore, there is no requirement to pay at the maximum rate in other employments. This could be because the employee has two or more jobs. This is not an automatic process and employees have to make an application for deferment each tax year. Just because deferment applies in one tax year does not mean that it automatically carries over to the next as the application lasts for one tax year only.
See general guidance about deferment on gov.uk but note that the rates on the page apply to 2018/19 and not 2019/20.
There are two ways in which an employee can make an application for a deferment certificate that they will then have to give to their employer / employers:
- Online via the Government Gateway using the ID and password
- By post or hand using the CA72A pdf form
In both ways, the employee can ask that HMRC deal with an agent / third party as long as they have signed a 64-8 “Authorising your Agent” form. This can also be done online. The 64-8 can be sent at the time of the application or beforehand.
HMRC have produced a useful set of guidance notes for the completion of the CA72A for 2019/20, either using the online application of the pdf form.
Global Payroll Association Comment
Employees are reminded that they need to send the form CA72A before the 14th of February 2019 in order for HMRC to issue the deferment certificate in time to give to the employer before the start of the tax year.
HMRC will consider issuing the deferment certificate after the 14th of February 2019 up to the 5th of April 2020. But this will only be with the agreement of the deferred employer. The reason for this is that HMRC may not have time to process and / or the employer may not be able to give refunds of the overpaid National Insurance through the payroll.
Employees that are eligible for deferment but do not apply for the certificate in time may be entitled to a refund of the overpayment but that will involve writing to HMRC. See the guidance notes for the address (which also applies for deferments for previous tax years).
The 14th of February 2019 is a crucial date for employees wishing to get deferment.