National Insurance – Under 25’s

It has been announced that from 6 April 2015 employers will not be required to pay any employer’s National Insurance Contributions (NIC’s) for workers aged under 21 years of age regardless of whether they are an apprentice or not.

There has also been a further improving of the policy from 6 April 2016 with apprentices under the age of 25 no longer being required to pay secondary Class 1 NIC (employers NIC) on earnings up to the upper earnings limit for that year.

When added to he £2,000 allowance against employers NIC available to employers since 6 April 2014 there are planning points to consider in the current recruitment process which can have a good financial impact on the company’s expenditure.

If you would like more guidance on these issues please contact one of our team.