½Û×ÓÊÓƵ

NIC calculations where more than one employment—overview

An employee who has several separate employments, whether successive or concurrent (but which are not affected by the aggregation provisions outlined at E8.240), for example a supermarket manager who is also a local councillor, is potentially liable to pay excessive contributions on his earnings, as the upper and lower earnings limits and earnings thresholds will apply separately to each employment.

To prevent the individual from paying excess primary Class 1 contributions, the legislation stipulates the maximum contributions payable for a tax year (also known as the 'annual maxima' or 'annual maximum')¹. Where the individual's contributions exceed this maximum, they can reclaim the excess from HMRC, see E8.267.

Note that, for the purposes of the calculation:

1. Ìý

   •ÌýÌýÌýÌý Class 1 contributions are to be treated as having been paid at the standard rate if the contributor is a married woman who pays at the reduced rate (see E8.293)²

2. Ìý

   •ÌýÌýÌýÌý where Class 2 contributions are paid at special rates for 2023/24 and