Close

4th March 2016

New NI Exemption for 2016/17

Apprentices:
HMRC has confirmed that starting from 6 April 2016 employers will be entitled to an exemption from Secondary Class 1 NI contributions in respect of wages for employees who are apprentices and aged under 25 at the time they are paid. However, the exemption doesn’t apply to primary Class 1 contributions i.e. those payable by the apprentices.

Exemption limits:
The exemption will apply to earnings up to the NI upper limit, which is expected to be at least £815 per week for 2016/17. In the unlikely event that you pay an apprentice more than the upper limit, secondary contributions at the normal rate, currently 13.8%, will be payable on the excess.

Action required:
payroll software providers and HMRC will update their programs to take account of the change before the start of 2016/17. Whatever software you use, each time you run a payroll after 5 April 2016 you’ll need to indicate which of your employees are qualifying apprentices.

This site uses cookies. Privacy Policy

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close