The table letter tells employers how much National Insurance an individual needs to contribute.
In order for umbrella employers to run their payroll they need to work out the National Insurance that you and they need to contribute. To do this, they use a table letter.
For 2021/22, most employees have category letter A on their payslip. This means that Employer National Insurance and Employees National Insurance is charged on amounts above the primary / secondary thresholds at 13.8% and 12% respectively. Amounts that come in above the upper earnings limit are capped at 2% for employees.
From 6 April 2022 to 5 April 2023 National Insurance contributions will increase by 1.25%. This will be spent on the NHS and social care in the UK.
The increase will apply to:
· Class 1 (paid by employees)
· Class 4 (paid by self-employed)
· secondary Class 1, 1A and 1B (paid by employers)
The increase will not apply if you are over the State Pension age.
The full National Insurance table letter categories for 2022/23 are as follows.
Employees Contributions
| Letter | Earnings below LEL | Earnings at or above LEL up to and including PT | Earnings above PT up to and including UEL | Balance of earnings above UEL |
| A | NIL | 0% | 13.25% | 3.25% |
| B | NIL | 0% | 7.10% | 3.25% |
| C | NIL | NIL | NIL | NIL |
| F | NIL | 0% | 13.25% | 3.25% |
| H | NIL | 0% | 13.25% | 3.25% |
| I | NIL | 0% | 7.10% | 3.25% |
| J | NIL | 0% | 3.25% | 3.25% |
| L | NIL | 0% | 3.25% | 3.25% |
| M | NIL | 0% | 13.25% | 3.25% |
| S | NIL | NIL | NIL | NIL |
| V | NIL | 0% | 13.25% | 3.25% |
| Z | NIL | 0% | 3.25% | 3.25% |
Employers Contributions
| Letter | Earnings below LEL | Earnings at or above LEL up to and including ST | Earnings above ST up to and including FUST | Earnings above FUST up to and including UST/AUST/VUST | Balance of earnings above UST/AUST/VUST |
| A | NIL | 0% | 15.05% | 15.05% | 15.05% |
| B | NIL | 0% | 15.05% | 15.05% | 15.05% |
| C | NIL | 0% | 15.05% | 15.05% | 15.05% |
| F | NIL | 0% | 0% | 15.05% | 15.05% |
| H | NIL | 0% | 0% | 0% | 15.05% |
| I | NIL | 0% | 0% | 15.05% | 15.05% |
| J | NIL | 0% | 15.05% | 15.05% | 15.05% |
| L | NIL | 0% | 0% | 15.05% | 15.05% |
| M | NIL | 0% | 0% | 0% | 15.05% |
| S | NIL | 0% | 0% | 15.05% | 15.05% |
| V | NIL | 0% | 0% | 0% | 15.05% |
| Z | NIL | 0% | 0% | 0% | 15.05% |
Glossary
LEL – Lower Earnings Limited
PT – Primary Threshold
ST – Secondary Threshold
FUST – Freeport Upper Threshold
UEL – Upper Earnings Limit
UST – Upper Secondary Threshold
AUST – Apprentice Upper Secondary Threshold
VUST – Veterans Upper Secondary Threshold
NI Category Letters
A – All not covered by another category
B – Married woman and widows entitled to pay reduced NI
C – Employees over state pension age
F – Freeport standard
H – Apprentice Under 25
I – Freeport married woman’s reduced rate election (MWRRE)
J – Deferment
L – Freeport deferment
M – Under 21
S – Freeport over state pension age
V – Veterans standard
Z – Under 21 deferment