Corringham Accountants, Trueman Brown, are a firm of accountants who like to keep their client’s up-to-date with the latest developments.

One consequence of the 2007-08 worldwide is that a large number of employees have seen no meaningful or, indeed, no increases in their wages rates for a number of years.

To keep up with the rise in the cost of living, many employees have sought out a second income whether by taking on a second employment or operating a business as a self employed person.


One problem taxpayers who have two sources of employment income or  income from both employment and self employment is that they may be paying too much national insurance!

For any individual, the maximum national insurance contributions can be calculated as follows:-

  • 53 weeks at the standard (primary) Employee Class 1 Contribution Rate (2016/17: 12%) between the earnings threshold (2016/17: £155 per week) and upper earnings limit (2016/17: £827 per week). For the fiscal year 2016/17 this figure comes to the sum of £4,273.92; and
  • A further 2% payable on earnings above the upper earnings limit.


If you think that there is a chance of exceeding this limit then the taxpayer has two choices of correcting any anomaly:-

Form CA72A

The taxpayer can apply to HMRC to defer contributions on the surplus employments and/or self employments.

If the taxpayer has more than one employment they need to apply by completing and forwarding the Form CA72A  to HMRC.

Although for 2016/17, the application should have been made before 5th April 2016, HMRC will accept applications up to 14th February 2017.

HMRC will then inform the taxpayer which employment(s) deferment has been granted.

A certificate is also sent to the employer asking them not to deduct primary contributions from the taxpayer and to refund any contributions that have already been deducted during the fiscal year.

At the end of the tax year, HMRC will calculate the national insurance contributions liability for the year and collect any balance due.

If the taxpayer is both employed and self employed, there is no need to apply for deferment. This will now be dealt with through the self assessment regime.


If the taxpayer fails to apply for deferment then they can still claim back overpaid national insurance contributions from HMRC. The time limit is broadly six years after the fiscal year in which the payment is made.

Corringham Accountants, Trueman Brown, can assist you in this matter. Please contact us on 01708 671910.