--- title: National Insurance Update for Employers description: National Insurance has undergone a series of changes in recent years; here we take a look at what has changed in recent years, and what is soon to come. image: https://blog.shorts.uk.com/hubfs/Images/Brick%20wall%20images/Jemma%20Jenkinson.jpg --- [![Shorts_logo_White](https://blog.shorts.uk.com/hubfs/New%20Site%202018/Shorts_logo_White.svg "Shorts_logo_White")](https://www.shorts.uk.com/) [Blogs & News](https://blog.shorts.uk.com/) > [Payroll](https://blog.shorts.uk.com/topic/payroll) # National Insurance Update for Employers June Freeman - 17 July 2015 ###### Select topic - Please Select - [ Audit ](https://blog.shorts.uk.com/topic/audit) [ Business Taxes ](https://blog.shorts.uk.com/topic/business-taxes) [ Radius – R&D Tax Relief & Patent Box ](https://blog.shorts.uk.com/topic/radius-rd-tax-relief-patent-box) [ Corporate Finance ](https://blog.shorts.uk.com/topic/corporate-finance) [ GENUS Management Accounts ](https://blog.shorts.uk.com/topic/genus-management-accounts) [ VAT ](https://blog.shorts.uk.com/topic/vat) [ Private Client ](https://blog.shorts.uk.com/topic/private-client) [ Payroll ](https://blog.shorts.uk.com/topic/payroll) [ EOT ](https://blog.shorts.uk.com/topic/eot) [ International Taxes ](https://blog.shorts.uk.com/topic/international-taxes) ![featured image](https://blog.shorts.uk.com/hubfs/Images/Brick%20wall%20images/Jemma%20Jenkinson.jpg) ###### National Insurance has undergone a series of changes in recent years; here we take a look at what has changed in recent years, and what is soon to come. From April 2012, National Insurance categories F, G and S could no longer be used following the abolition of contracted out for money purchase schemes. Employees previously on these codes, who are aged 21 or over and are members of a money purchase scheme, must now pay not contracted-out National Insurance (categories A,B,C and J). Contracted-out National Insurance will be abolished on 6 April 2016, meaning employees in a final pension salary pension will have to pay more National Insurance from then. Based on current rates, employee’s contributions will increase by 1.4% between the primary threshold and the upper accrual point. In addition, this means employers will also be liable for higher costs because the Employers (secondary) rate of National Insurance will increase by 3.4%. All individuals who are contracted-out will be contacted by the [Department for Work and Pensions](https://www.gov.uk/government/organisations/department-for-work-pensions) (DWP) to inform them of these changes. Other changes to National Insurance to note: *The abolition of Employer National Insurance Contributions for Under 21’s ([See earlier news](https://www.shorts.uk.com/news/abolition-of-employer-national-insurance-contributions/)) *The continuation of the Employment Allowance into 2016/17 at the higher rate of £3000 per year ([See earlier news](https://www.shorts.uk.com/news/increase-to-employment-allowance-the-new-national-living-wage/)) *From 2016/2017 there will be a new National Insurance exemption for apprentices. If you have any queries on this or any other payroll issues, please do not hesitate to contact a member of the Payroll team on 01246 559955. ![author](https://blog.shorts.uk.com/hubfs/SHORTS_04-08-22-153.jpg) #### June Freeman With over 25 years in payroll management, June brings extensive experience in end-to-end payrolls and compliance. June is the Payroll Manager at Shorts, ensuring accuracy, resolving complex queries, and delivering exceptional client service. Skilled in handling end-to-end payrolls of varying complexity, she has worked closely with finance, pensions, and HR teams, gaining a deep understanding of both in-house practices and client perspectives. [View my articles](https://blog.shorts.uk.com/author/june-freeman) Tags: [Payroll](https://blog.shorts.uk.com/topic/payroll) Share this on - - - [Questions? Get in touch with us](https://www.shorts.uk.com/contact/) ###### Tax Saving Guide 2026-27 Written especially for entrepreneurs and owner-managed businesses, this guide is full of planning ideas and tax risks to avoid. 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