National Insurance contributions abolished for apprentices under 25
Good news for businesses who employ apprentices, as from the 6th April 2016 you may no longer need to pay National Insurance contributions on their earnings below £827 a week (£43,000 a year).
To be exempt from the payments, the apprentice must be under 25 years of age and be following an approved UK government statutory apprenticeship framework. To check if your apprentice comes under a relevant framework, click here to visit the Gov.uk apprenticeship framework live list.
If your apprentice meets the conditions, evidence will be needed to prove eligibility. This can be either:
• a written agreement between you, the apprentice and a training provider
• in England and Wales, evidence that the apprenticeship receives government funding
The written agreement must show:
• the government apprentice framework or standard
• a start and (expected) end date for their apprenticeship scheme
If the training provider hasn’t signed the written agreement, they’ll need to give you a document that shows:
• they’re an approved (recognised) training provider
• the training your apprentice is undertaking, and any training already done
In England and Wales, you can provide evidence of government funding of the apprenticeship. This could be the declaration to receive apprenticeship incentive payments, or the employer payment schedule to the provider.
To find out more about the National Insurance exemption for apprentices under 25 years old, click here.