National Insurance Letters

What is a national insurance letter?

A national insurance letter indicates the employment status of the individual to determine the percentage rate and threshold of national insurance deducible on gross earnings.

National insurance letters also determine  the percentage rate and threshold of secondary contributions from the employer.

 The most common letters in use are A, C, J and M

  • A – Employees 21 years and over up to state pension retirement age
  • C – Employees at or above state retirement age
  • J – Employees with more than 1 job over the primary threshold
  • M – Employees under 21 years of age
On the 6th April 2016 letter H was introduce for Apprentices under 25
  • H – Employees who are apprentices under 25 years of age

Good news for employers, there will be no secondary contribution by the employer until the apprentice under 25 has earnings above the Apprentice Upper Secondary Threshold (AUST) £962 per week (2019/20)

If you suspect your employee has the wrong letter applied to their records the employee should ring HMRC to be re categorised.

 Employee Primary Contributions

Employers Secondary Contributions

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