two employments and NIC contributions

by **flyingto** on Mon Apr 11, 2011 8:13 pm

I have one employment from which I am an 50% tax payer. I have alos just started a company and want to pay a bonus to 5 April 2011. I have the HMRC payroll software. Do I use my tax code from my other employment when workign out my tax. Any will this not mean that I have to pay more class 1 national insurance than is necessarY? If so how do i avoid this or do I simply have to make a reclaim?
Many thanks for any help you can provide me with.

by **pawncob** on Mon Apr 11, 2011 9:30 pm

Use a zero code on the second employment.
If your class 1 NICs exceed the maximum you can claim a refund at the year end.

by **innovativetax** on Sun Apr 17, 2011 10:51 pm

If you continue to have multiple employments in future tax years, you can apply for a deferrment of primary contributions of your second employment. Once granted you will only pay the extra 2% NIC on second employment. If you overpaid NIC, you can also apply for the excess to be refunded to you.

by **King_Maker** on Mon Apr 18, 2011 9:21 am

Is there a particular reason to pay a bonus - and suffer 50% tax and Employer's NI?

I assume the new company has insufficient distributable reserves to pay an interim dividend?

Or use a loan(s) write off - it can viewed as somewhat aggressive by HMRC