25/04/2016
Information for Employers with Apprentices:
If employers pay an apprenticeship under 25, they no longer have to pay national insurance for them - As from April 2016
https://www.gov.uk/government/publications/national-insurance-contributions-for-under-25s-employer-guide
The benefit to an employer is that it will be making a further saving to their wage bill.
The evidence it speaks of will be a copy of the ILP as they have all the details on the front and all signed the agreement
Overview
From 6 April 2016, if you employ an apprentice you may not need to pay employer Class 1 National Insurance contributions (NICs) on their earnings below £827 a week (£43,000 a year).
They must be under 25 years old and following an approved UK government statutory apprenticeship framework (frameworks can differ depending on the UK country).
Evidence needed
If your apprentice meets the conditions above, you’ll need to have evidence to be able to apply the relief. This can be either:
• written agreement between you, the apprentice and a training provider
• in England and Wales, evidence that the apprenticeship receives government funding
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
Alternatively, in England and Wales, you can provide evidence of government funding of the apprenticeship. This could be the declaration to receive apprenticeship incentive
This is a guide for employers on changes to National Insurance contributions for apprentices aged under 25 applying from April 2016.
