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Employer NIC relaxation for under 21s

Employer NIC relaxation for under 21s

As of 5 April 2015, employers may no longer be required to pay Class 1 secondary NICs in respect of employees aged under 21.

The rate of Class 1 secondary NICs will be 0% up to the upper earnings limit (£42,285) with NICs payable normally above this limit and on any Class 1A (most P11D items) or 1B (PAYE Settlement Agreements).

A new range of NI category letters for processing payroll will be available.

The savings for businesses, especially those with young workforces, could be significant.

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