If one of your employees has more than one job, this may affect the way you work out the National Insurance contributions (NICs) due on their pay. The changes you may need to make are outlined in the sections below.
Note that an employee having more than one job does not affect deductions of PAYE (Pay As You Earn) tax.
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If one of your employees has another job with a different employer, then you don't have to make any changes. You should work out NICs in the normal way on the payments you make to the employee. You can ignore whatever payments are being made to the employee in their other job or jobs.
If you carry on business in association with another employer or employers that your employee also works for, add together the earnings from each job and work out the NICs due on the total. You should then agree with the other employer(s) how to share out the payment of employer's contributions.
Employers are considered to be carrying on business in association with each other if both of the following apply:
If an employee has more than one job with you at the same time, you must add all their earnings together and work out NICs on the total.
An exception may be made if the earnings from the jobs are separately calculated. If this is the case, you do not have to add the earnings together if it is not reasonably practicable. Bear in mind that HMRC may require you to show why it has not been reasonably practicable to do so.
If an employee has more than one job and thinks that they will earn more than the Upper Earnings Limit, they can apply to the National Insurance Contributions Office for permission to defer some of their employee's NICs liability.
If the employee's application is approved, HMRC will send you a form CA2700 authorising you to deduct employee's NICs at a rate of 2 per cent on all their earnings above the Primary Threshold.
More detailed information about NICs for employees with more than one job is contained in pages 39-65 of HMRC’s publication CWG2, 'Employer Further Guide to PAYE and NICs'. There's a link to it below.
Rates and thresholds for employers
Download CWG2, 'Employer Further Guide to PAYE and NICs' (PDF 530K)
