Employer National Insurance Contributions for Apprentices under 25 abolished!

From 6th April 2016, employers of Apprentices under the age of 25 are no longer required to pay secondary Class 1 (employer) National Insurance contributions (NICs) on earnings up to the Upper Earnings Limit (UEL) of £827 per week. This is also now known as the Apprentice Upper Secondary Threshold (AUST).

Note this change will only benefit employers and Apprentices will still continue to play employee contributions if their salary is above £155 per week.

Apprentices affected by the change will fall under NIC category ‘H’.

In order to claim the relief, employers will need to be able to evidence that the employee in question is on an Apprenticeship. We have written to all our employers to make them aware and offer their further advice and assistance with providing the required evidence.