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Author: JP / / Latest News

NI categories are changing (all employees over 16 and under 21)

From 6th April 2015 there are 4 new National Insurance categories being introduced. These relate to all employees under the age of 21 and over the age of 16.

The new categories are as follows:

–          Category M – for an employee under 21 that IS NOT part of a contracted out pension scheme. (For over 21’s this is category A)

–          Category I – for an Employee under 21 that IS part of a contracted out pension scheme. (For over 21’s this is category D)

 

If you employ someone that earns over £42,385 then there are 2 further categories that you will need to use below instead of Category M and I:

–          Category K – for an employee under 21 that IS NOT part of a contracted out pension scheme. (For over 21’s this is category L)

–          Category Z – for an employee under 21 that IS part of a contracted out pension scheme. (For over 21’s this is category J)

 

If you currently outsource your payroll with Stopford Associates, these changes will be automatically updated on your behalf. If you need further advice or would like to talk to the team about outsourcing your payroll, please contact: Matthew Turner on 01623 420 269 or by email: matt@stopfords.co.uk

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