beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

National Insurance Manual

Class 1 structural overview: abolition of secondary NICs for those employees under the age of 21: category letters

New under-21 category letter Description Existing equivalent category letter for those over 21
M Not contracted-out standard rate contributions A
Z Not contracted-out deferred rate contributions J
Y Mariners not contracted-out standard rate contributions R
P Mariners not contracted-out deferred rate contributions Q
V Mariners contracted-out salary related contributions N
I Contracted-out salary related standard rate contributions D
K Contracted-out salary related deferred rate contributions L

Three of the new letters (V, I and K) will only be used for the tax year 2015 to 2016 in line with the ending of ‘contracting-out’ in relation to salary-related occupational pension schemes.