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.
Example: An employee has two jobs. It is May 2021. The weekly National Insurance ‘Earnings Threshold’ for employees is £184 per week. In the main job earnings are £194 per week. In the second job earnings are £50 per week. In the first job the national Insurance is £1.20 which is 12% on £194 less £184. In the second job there are no National Insurance Contributions payable as earnings in that job are less than £184 in the week.
The employer in the first job will pay ‘Secondary Contributions’ at 13.8% over £170 pw. The employer for the second job will not pay Employers’ National Insurance.