Abolition of Employer’s NIC for payments to Employees Under the Age of 21

From 6th April 2015, every employer with employees under the age of 21 will no longer be required to pay Class 1 secondary NIC on the employee’s earnings, up to the upper earnings limit (UEL) of £42,285 for those employees.

Employer’s NIC will be liable as normal on an under 21 employee’s salary in excess of the UEL of £42,285.

The removal of the requirement for employers to pay Class 1 secondary NIC on an employee’s salary (if employee is under 21) aims to encourage employers to employ individuals under the age of 21.

If the employee is 21 or over when the earnings are due to be paid, the abolition of employer’s NICs for the under 21s no longer applies to the employee from that earnings period onwards.

19th June 2014

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