Paying too much NI

[businessor]

Hello

I have an Umbrella contract and they charge me 12% for employee National Insurance. However, due to having other income, they should charge me 2%.

How can I fix this? The Umbrella company does not advise what can be done.

Thanks!

 

[Hash and Bash]

https://www.gov.uk/defer-national-insurance
https://assets.publishing.service.g...achment_data/file/968854/CA72A-Notes-2021.pdf

 

[UK Contractor Accountant]

However, due to having other income, they should charge me 2%.

why?

Do you have other employment income?

You need to stop taking a salary through your PSC if that's the other employment income you are talking about.

 

[Spur Support Services]

If you have another employment where you are already paid over the upper threshold for NIC, then your employer is using the wrong NI table letter, but he has no choice, as you haven't supplied the necessary certification. (PAYE administration is evidence based)

You need to obtain a deferment certificate using https://www.gov.uk/government/publi...lass-1-national-insurance-contributions-ca72a

Once you supply your employer with the certificate, then they will replace your NI letter with J rather than A.

Direct them to booklet CA38, if you have problems after supplying the certificate.

If your two employments combined send you over the upper threshold, then you may still be able to recover overpaid NIC, but that would be under a separate process.

I hope this helps.