National insurance on second job

adam2484

Hi everyone,

I pay the 12% rate on my first job and tiny amount at 2%

My second job is above the National Insurance threshold and I'm charged at 12%. (I don't go near the 2% threshold)

The jobs are identical just the second job is essentially overtime and paid under a different employee number, through an agency.

Is there a way to get the second job National Insurance at 2% and claim back any extra money?

Thanks

[Deleted User]

One used to be able to formally claim a refund of overpaid Class 1 2 and 4 NIC at the end of the year. This stopped around two or three years ago. Now HMRC undertake to review automatically.

unforeseen

Each job is treated seperately so I don't understand why you think you should only pay 2% on the second job.

00ec25

your employer has, for their own reasons, decided to treat your "overtime" as a separate employment and has gone to the "trouble" of engaging you via an agency to "establish" an arms length between your "overtime" and your substantive job

if that situation would survive an HMRC enquiry then no, you cannot claim back the extra NI
That second job gives you a second NI allowance and correctly applies the 12% rate on the excess over that second allowance.

if you want to be taxed at 2% you will need to get your employer to abolish the second "post" and pay you genuine overtime

[Deleted User]

00ec25 wrote: »

your employer has, for their own reasons, decided to treat your "overtime" as a separate employment and has gone to the "trouble" of engaging you via an agency to "establish" an arms length between your "overtime" and your substantive job

if that situation would survive an HMRC enquiry then no, you cannot claim back the extra NI
That second job gives you a second NI allowance and correctly applies the 12% rate on the excess over that second allowance.

if you want to be taxed at 2% you will need to get your employer to abolish the second "post" and pay you genuine overtime

Perhaps I have read it wrong but I got the impression that the second job was paid through an agency and not necessarily related to the main employer (even though the 'jobs are identical') For example, a full time secretary who also works for an agency, as a secretary.
I think some clarification is required.

chrisbur

The question of how NI should be deducted is a bit involved. If the two jobs are unconnected then it should be deducted by calculating it separately; if the jobs are connected then it should be calculated by adding the two payments together; but if that is not possible then you go back to calculating them separately.
At the end of the year if the amount deducted due to the wages being paid separately is more than would have been due on those wages had they been paid as one wage then a refund is due. Though I believe there is a minimum figure before that refund is paid.
So really comes down to was the benefit of the extra allowance more than cancelled out by the increase in NI from 2% to 12%.

In circumstances like this where NI is going to be overpaid you can apply for deferment to avoid this happening.
https://www.gov.uk/defer-national-insurance

There is also a site to claim an NI refund
https://www.gov.uk/claim-national-insurance-refund

adam2484

Thanks all, I could have been clearer.

I'm a nurse. I work for the hospital and get my main salary from them.

I'm also on the bank which is run by an agency so get paid by them doing the same job for vacant shifts.

I have worked out that I'd be better off if the whole lot were treated as one income (i.e my second job NI contributions at 2% entirely)

[Deleted User]

adam2484 wrote: »

Thanks all, I could have been clearer.

I'm a nurse. I work for the hospital and get my main salary from them.

I'm also on the bank which is run by an agency so get paid by them doing the same job for vacant shifts.

I have worked out that I'd be better off if the whole lot were treated as one income (i.e my second job NI contributions at 2% entirely)

As I suspected. Accordingly you need look no further than the advice given by chrisbur above.