Reduced NI rates for married persons | Moorepay

Payroll Legislation

Reduced NI rates for married persons

Legislation

Reduced NI rates for married persons

Date

Effective April 2025

Summary

Starting from the 2025-26 tax year, HMRC will introduce a stricter validation process to reject FPS submissions where a reduced rate NICs category letter is used incorrectly. This update is included here as an advance notice for employers.

This rule specifically applies to married female-identifying individuals and widows who have elected to pay the reduced rate of National Insurance.

Moving forward, the submission will be rejected if the individual does not qualify based on their date of birth. This change addresses the ongoing issue of misuse of the reduced rate NI scheme, which was originally introduced as a concession for married women and widows before 1977.

The scheme is now closed to new entrants, and the validation process ensures that only those still eligible can claim the reduced rate.

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Payroll legislation guide

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