Which ni category

National insurance contributions are a tax on earnings. Your contributions will be taken off along with your income Tax before your employer pays your wages. Contributions are taken to help build your entitlement to certain state benefits such as state pension and maternity allowance. National Insurance category letters are used during payroll runs. Employers work out how much needs to be contributed by using these. Contributions are made both from the employer and employee.

Your employer will also pay into your National Insurance Contributions but these rates will be slightly different from yours. Why is this important for Payroll? What categories are there? Category Letter A Default category for employees not in another category. Standard rates for employee and employer apply M Employees under the age of Nil employee contributions. H Apprentices under the age of 25 following an approved apprenticeship framework.

This is not straightforward, see here. We rarely see National Insurance category B employees. In Summary We find National Insurance categories are often poorly understood, and we do sometimes see mistakes made in the payrolls moving to us.

Newsletter Signup Sign me up. You also need to make checks when you recruit and employ someone. You need to register with HMRC so you can pay tax and national insurance for your employees. To help us improve GOV. It will take only 2 minutes to fill in.

Cookies on GOV. UK We use some essential cookies to make this website work. Accept additional cookies Reject additional cookies View cookies. Hide this message. Part of Get your business ready to employ staff: step by step. National Insurance rates and categories. Print entire guide.

Step 1 : Decide what type of employee you need.