Employers Don’t Pay NI for Apprentices Under 25: What You Need to Know
Hiring an apprentice is a great way to enhance your team, and the National Insurance (NI) savings are an added benefit. Despite increases in minimum wage and various taxes, one factor that remains unchanged is the exemption from NI contributions for apprentices under 25.
This change offers a substantial financial incentive for companies looking to support their business and develop a skilled workforce.
The detail;
- Under the guidelines, employers no longer need to pay NI contributions for apprentices under 25 on annual earnings up to £50,270.
- This NI exemption applies to apprentices who are on an approved UK government apprenticeship standard or framework
What does the financial saving look like? Hiring an apprentice at an annual salary of £25,000 can generate a NI saving of roughly £3,000 per year
Benefits for Existing Staff: You can also make use of this NI benefit for your existing staff if they fall under the age and salary threshold.
For more detailed information and to check if your apprentice is on a statutory apprenticeship, visit the following government links:
By leveraging this opportunity, employers can significantly reduce costs while investing in the future of their workforce.
To take full advantage of this opportunity and discuss how hiring an apprentice can benefit your business, contact our team today. We’re here to guide you through the process and help you find the right candidate to support your company’s growth.
Email: info@apprentice-employment.co.uk
Call: 0345 003 0007
