National Insurance Contributions Removed For Under 25s
When will the legislation change?
This measure will have effect from 6 April 2016.
Who is likely to be affected?
Employers of apprentices under the age of 25.
General description of the measure
From April 2016 employers of apprentices under the age of 25 will no longer be required to pay secondary Class 1 (employer) National Insurance contributions (NICs) on earnings up to the Upper Earnings Limit (UEL), for those employees.
The Government is committed to ensuring more people can access high quality apprenticeships. Apprenticeships offer young people an alternative to university as a path into skilled employment.
This measure is intended to support employers who provide apprenticeships to young people by removing the requirement that they pay secondary Class 1 NICs on earnings up to the UEL, for those employees. This should also support youth employment.
Background to the measure
The measure was announced at Autumn Statement 2014.