What to do if your employee has more than 1 job

How to work out National Insurance contributions if your employee has more than 1 job.


If your employee has more than 1 job with you - or with another employer you ‘carry out business in association’ with - you may have to calculate National Insurance contributions (NICs) based on the earnings of both of their jobs.

You may not need to ‘aggregate earnings’ in this way if you can show HM Revenue and Customs (HMRC) that it’s not ‘reasonably practicable’ for you to do so.

The way you work out their PAYE tax won’t change.

If your employee thinks they’ll earn more than £41,865, they can apply to delay paying some of their National Insurance contributions.

Business in association

When deciding if you are carrying out business in association with another employer, and if aggregation is appropriate, HMRC will consider factors such as whether:

  • you share (to a significant degree) things like accommodation, employees, equipment or customers
  • your businesses serve a common purpose

This may apply to you if your business has a holding company, or you and another company have shared ownership.

There’s more information in HMRC’s technical manual on carrying out business in association or by calling the HMRC Employer Helpline for advice.

Calculate your employee’s aggregated earnings

You should calculate, record and report the employee’s pay, income tax and NICs as normal.

If your employee works for someone else, you and the other employer should do this separately for each job.

You then need to calculate the aggregated earnings on 1 of the employee’s payroll records. If your employee works for someone else, you’ll need to decide which employer will do this.

If your employee has more than 1 job with you and their earnings are reported under different Payroll IDs, you’ll have to choose on which payroll record you want to record the aggregated earnings.

To aggregate the earnings:

  1. Add together the earnings from each job.

  2. Use these aggregated earnings to calculate and record the employer’s NICs.

  3. Also use the aggregated earnings to calculate the employee’s NICs and work out if you need to pay any more (above what’s already been recorded for the employee’s separate earnings for the 2 jobs).

  4. Pay HMRC the employer National Insurance and any extra employee NICs on the aggregated earnings.

  5. Update the year-to-date NICs figures in your employee’s payroll record to reflect NICs for the aggregated earnings.

  6. Set the ‘Aggregated earnings indicator’ to ‘Yes’ in your employee’s payroll record.

  7. Report the payroll information to HMRC in your next Full Payment Submission.

If earnings are aggregated, any student loan amounts due must be calculated and deducted from the aggregated earnings.

The payroll record for the employee’s other job(s) should then be updated. If your employee works for someone else, you may need to ask the other employer to do this.

  1. Put ‘0.00’ for all the year-to-date NICs fields.

  2. Put ‘0.00’ for the employer NICs in this period.

  3. Set the ‘Aggregated earnings indicator’ to ‘Yes’.

For more detail and examples of how to calculate NICs, see ‘Working out and recording NICs when earnings from separate jobs are added together’ in Chapter 3 of HMRC’s guide Employer Further Guide to PAYE and NICS

Published 12 June 2014