New Release | Payroll UK: Assigning National Insurance Category Letter X | 7 Aug 2025

What’s New?

• Assigning National Insurance Category Letter X

  The NI category letter X is used for employees who do not have to pay National Insurance - those under the age of 16 or with valid documentation. This change will allow users to assign category letter X to employees who are over the age of 16, without the system reverting them back to a previous category (most employees have category A). 

  However, if the category needs to be changed in the future (back to category A, for example), it will need to be done manually (via the employee's 'Pay & Tax Details' page in the Payroll module). This adds flexibility but must be used correctly to comply with HMRC rules.

Release date: 7th August 2025