| Category | Payroll Application |
|---|---|
| A | Standard: The default for all employees aged 21 to State Pension age. |
| B | Reduced Rate: For certain married women/widows. You must hold a valid "Certificate of Election" to use this. |
| C | Over State Pension Age: Employees stop paying NI. The employer still pays contributions at the standard rate. Requires proof of age. |
| H | Apprentices (<25): Significant saving for MATs. 0% Employer NI up to the Apprentice Upper Secondary Threshold. |
| J | Deferment: For employees already paying maximum NI elsewhere. Requires an HMRC deferment certificate (CA2700). |
| M | Under 21s: Use for junior support staff. 0% Employer NI up to the Upper Secondary Threshold |
| V | Veterans: 0% Employer NI for the first 12 months of the veteran’s first civilian job. A great CSR and cost-saving angle for Trusts. |
| X | Zero NI: Used for employees not subject to NI, such as those under 16 or certain non-UK residents. |
| F / I / L / S | Freeports: Specialized categories for staff working in designated Freeport tax sites. |
| N / D / E / K | Investment Zones: Specialized categories for staff working within designated Investment Zones. |
Pro Tip for Hub Leads: When onboarding a new MAT into your Shared Services Hub, performing a "Category Audit" on their existing data often uncovers staff on Category A who should be on M or H, potentially saving the Trust thousands in backdated overpayments.
Ready to modernise payroll
across your MAT?
See how AcadaFix brings accuracy, compliance and visibility to every school in your trust.
