PLEASE NOTE: The charity TaxAid advises only those people on low incomes whose problems cannot be resolved with HMRC.

National Insurance with more than one job

National insurance for employees and employers

National Insurance for employees operates in a different way from income tax. With income tax there is a single tax free amount available per person per tax year. For National Insurance there is a new limit for each job so long as it is with a different employer. There are plans to reform this aspect if National Insurance.

Example: Sandra has two jobs. It is May 2016. The weekly National Insurance ‘Earnings Threshold’ for employees is £155 per week. In her main job she earns £165 per week. In her second job she earns £55 per week. In the first job she will pay £1.20 per week in National Insurance – 12% on £165 – £155. In the second job she will pay no National Insurance as her earnings in that job are less than £155 in the week.

Sandra’s employer in her first job will pay ‘Secondary Contributions’ of  £1.24 (£165 – £156 = £9 x 13.8% = £1.24). The ‘Earnings Threshold’ for employers’ contributions is £156 per week and the rate is 13.8%. The employer for her second job will not pay Employers’ National Insurance.

For people on very high incomes there is an overall maximum amount of National Insurance that can be paid.  More information can be found on the Gov.uk, HMRC pages here.