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Have a question? Like to know more? - Contact us or Call +44-1865 292200 or +44-20 7436 4773, Mon-Fri 8:15am - 5:15pm
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From April 2016 employer national insurance contributions (NICs) up to the upper earnings secondary threshold (UESC) will effectively be abolished for apprentices aged under 25.
Prior to 6 April 2016, employers have been required to pay Class 1 secondary (employer) NICs at 13.8% on earnings paid to employees above the lower secondary threshold, which is set at £156 per week for 2015/16. This will be set at a zero-rate for ‘relevant’ apprentices on weekly earnings up to £827 for 2016/17.
A technical consultation with draft regulations defining a ‘relevant’ apprenticeship was issued in July 2015. The key points are as follows:
This change is the latest in a series of reforms to national insurance during recent years.
If you have any questions relating to national insurance, please do not hesitate to contact us on 01865 292200 or email contactus@shawgibbs.com.