Changes to National Insurance Contributions for apprenticeships

Thursday 27 August 2015

From April 2016, employers and apprentices under the age of 25 will no longer need to pay secondary (employer) Class 1 NICs on earning below the Upper Earnings Limit (UEL).

This follows the Chancellors announcement to abolish Class 1 contributions in the Autumn Statement 2014, aimed at encouraging more employers to consider taking on apprentices and to make them a more attractive proposition and a genuine alternative to university.

Take part in the consultation

Take part in the consultation exercise which ends on 18 September and you can help define the meaning of 'relevant apprentice' as set out in The Social Security (Contributions) (Amendment) Regulation 2016.

The consultation invites interested parties to comment on the definition of 'relevant apprentice' as provided in the draft regulations. The HMRC are particularly interested in this approach’s impact regarding administration and compliance for employers.

Any comments on the draft regulations should be sent to:

Responses to the consultation will then be reviewed and analysed and the draft regulations revised as appropriate before they are laid before Parliament.