Professional December 2019 - January 2020

PAYROLL INSIGHT

Category letter Employee group A

All employees apart from those in groups B, C, J, H, M and Z in this table

Married women and widows entitled to reduced National Insurance

B

Employees over the State Pension age

C

Employees who can defer National Insurance because they’re already paying it in another job

J

Apprentice under 25

H

Employees under 21

M

Employees under 21 who can defer National Insurance because they’re already paying it in another job

Z

Class 1: employees

Class 2: self- employed

Class 3: voluntary contributions

Benefit

Basic state pension

Yes

Yes

Yes

Additional state pension

Yes

No

No

New state pension

Yes

Yes

Yes

Contribution-based Jobseeker’s Allowance Contribution-based Employment and Support Allowance

Yes

No

No

Yes

Yes

No

Maternity Allowance

Yes

Yes

No

NICs

For the year ended 31 March

2018

2017

Contributions - estimated breakdown by class

£000

£000

Class 1 (employed earners)

97,171,387

92,145,709

Class 1A & 1B

1,298,615

1227,184

Class 2 (self-employed flat rate)

321,873

400,864

Class 3 (voluntary contributions)

69,102

12,809

Class 3A (voluntary contributions)

40,298

98,784

Class 4 (self-employed earnings related)

2,325,659

1,967,644

101,226,934

95,852,994

| Professional in Payroll, Pensions and Reward | December 2019 - January 2020 | Issue 56 22

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