Description
Investment Zone National Insurance Categories have been announced by HMRC to be effective from 2024/2025 tax year whereby if your agency and client are within an investment zone and any new payee who will be working 80% of their time in the investment zone in the tax year, you are able to pay a reduced amount of employer National Insurance contribution for a period of 3 years.
The new categories are:
Category Letter | Description |
|---|---|
D | The equivalent of J category. Employees who work in investment zones and can defer National Insurance because they’re already paying it in another job. |
E | The equivalent of B category. Married women and widows who work in investment zones and are entitled to pay reduced National Insurance. |
K | The equivalent of C category. Employees who work in investment zones and are over State Pension age |
N | The equivalent of A category. All employees who work in investment zones, apart from those in groups E, D and K in this table |
The categories are available to select in the Payee > HMRC Details section should you have any payee meeting the criteria of working in an Investment Zone.
When the expiry date arrives, FastTrack360 will automatically revert to the non Investment Zone category within the period close process.
Benefits
To allow for the application of Investment Zone NI relief for the employer.
Configuration
In the payee record:
Add a new validity for the HMRC Details section
Apply the relevant NI category to the validity period.