From 6 April 2015, employers with employees under 21 years old will no longer have to pay Employers National Insurance contributions on earnings up to the Upper Secondary Threshold, (£815.01 per week). Employees however, will not notice this change and will continue to pay the standard rate of Class 1 national insurance.
If you currently have employees aged between 16-20, when processing your first payroll of the 2015/16 year, you will need to change their NI Category (usually ‘A’) to one of the 7 new categories below:
M – not contracted-out standard rate contributions
Z – not contracted-out deferred rate contributions
Y – mariners not contracted-out standard rate contributions
P – mariners not contracted-out deferred rate contributions
V – mariners contracted-out salary related contributions
I – contracted-out salary related standard rate contributions
K – contracted-out salary related deferred rate contributions
For more information, contact a member of the payroll team on 01246 559955.
Jemma Jenkinson
View my articlesTags: Payroll
