Where individuals have multiple employments or are both employed and self-employed (including in a partnership), a cap (the 'annual maxima') limits the total National Insurance Contributions (NICs) payable.
This is a freeview 'At a glance' guide to the cap on National Insurance Contributions (NICs).
Subscribers see National Insurance: What's the maximum payable?
At a glance
- Employees (employed earners) pay Class 1 NICs.
- Self-employed individuals pay Class 2 and Class 4 NICs.
- Two separate calculations determine the Maximum NICs payable.
- For years up to 2014-15, taxpayers had to pay the full amount NIC and then claim back any excess after the year-end.
- From 2015-16 onwards, the calculations should be performed automatically as part of the tax calculation for the year with only the actual NICs due for the year being paid.
- If an overpayment of Class 1 NICs is likely, it is possible to request a deferment.
See National Insurance: What's the maximum payable? for details of the annual maxima calculations, including examples.
Useful guides on this topic
National Insurance: What's the maximum payable?
How are National Insurance Contributions (NICs) limited? What is the maximum payable? What different rules apply to employment and self-employment income?
National Insurance for landlords
When are National Insurance Contributions (NICs) payable by landlords? Can landlords pay Class 2 NICs voluntarily?
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