It is the annual time to consider deferring National Insurance Contributions (NICs), something individuals can elect to do or nominate a third party via form 64-8.
The primary reason for deferring with a single employer is where the individual pays Class 1 NICs with more than one employer and their earnings exceed the Upper Earnings Limit (UEL) in one employment.
When they are eligible and HMRC have issued a deferment certificate, the employee can elect to pay NICs at a deferred rate which is 2% rather than the standard rate. This means the employee will be placed onto one of the below table letters:
- J (standard)
- Z (employees under 21 on payday)
- D (employees working in an Investment Zone) or
- L (employee working in a Freeport zone)
Note that an employer can only allocate one of these table letters when they have received confirmation from HMRC via form CA72.
For Bookkeepers
As noted above, the application to receive form CA72 and defer NICs in the payroll is generally an individual (employee) responsibility. However, if the employee asks an authorised agent to make the application, a signed 64-8 must be held.
If asked by an employee or a client, it is useful to have the CA72A deferment application link available and the associated guidance notes for 2026/27. There are two ways of applying:
- Online (where a Government Gateway user ID and password is required), or
- By post
Note that members must have a signed 64-8 if they are going to be making the application.
