No Employer’s NIC for employees aged under 21

Accounting, Businesses, National Insurance, Payroll, Uncategorized l

under21With effect from 6 April 2015 employers with employees under 21 years old will no longer have to pay Class 1 secondary National Insurance contributions (NICs) on earnings up to the Upper Secondary Threshold (£815 per week) for those employees.

You will need to record a different NI category letter for any such employees. Current category A will be replaced by category M until the employee’s 21st birthday.

There is no effect on the NICs payable by the employee.