Search

How can we help?

Icon

Employers no longer have to pay National Insurance contributions for apprentices under the age of 25

April 2016 marks a change in the law that is designed to further encourage employers to take on more apprentices. Since 6 April 2016 employers no longer have to pay National Insurance contributions for apprentices under the age of 25 for earnings below £827 per week (£43,000 per year).  It is thought that employers of young apprentices are set to save thousands of pounds in National Insurance contributions as a result of the recent change, and the Department for Business, Innovation and Skills estimates that employers will now save around £1000 a year when employing an apprentice aged under 25 and earning £16,000 per annum.

This is just one of many steps that the Government has taken or is expected to take in attempts to encourage more employers to offer more apprenticeships. By April 2017 the Government intends  to establish the Institute of Apprenticeships; a new independent body led by employers that will ensure the quality of apprenticeships in England. In addition, the Government has also introduced a £10million fund for the purposes of boosting the number of degree apprenticeships available.

Monica Atwal

MANAGING PARTNER

View profile

+44 118 960 4605

The Government has also introduced a £10million fund for the purposes of boosting the number of degree apprenticeships available.

As part of this agenda, the Government has also recently published draft legislation introducing the Apprentice Levy from April 2017, which will be a 0.5% charge on employers’ pay bills in excess of £3m per tax year, which has the stated aim of raising £3bn to fund new apprenticeships and training schemes across the UK.

Apprenticeships are a growing priority of the current Government and are expected to become a more frequent feature in employers’ organisations in the coming years.  If you are thinking of employing apprentices, one of our experienced employment lawyers will be more than happy to discuss this with you and the issues in employing young people generally.

About this article

Disclaimer

This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

Monica Atwal

MANAGING PARTNER

View profile

+44 118 960 4605

About this article

Read, listen and watch our latest insights

art
  • 01 June 2023
  • Employment

Facts employees should know about their personal data

We previously published an article on facts an employer should know about holding personal data, so it is only fair that we also write about the other side of the coin – facts employees should know as individuals whose personal data is held by their employer.

art
  • 01 June 2023
  • Immigration

What is the Immigration Skills Charge (ISC) and how much do you have to pay?

The Immigration Skills Charge (ISC) is a levy on companies who sponsor migrant workers. This levy was imposed on 6 April 2017. The Government states that the charge has been levied to contribute towards addressing the skills gap in the local economy.

art
  • 26 May 2023
  • Employment

Avoiding discrimination in flexible working requests

The right to request flexible working is currently available to employees with at least 26 weeks’ service and is set to be extended further under new Government reforms.

art
  • 25 May 2023
  • Corporate and M&A

Management Buyout – Top 5 things to consider

A management buyout is a financial transaction in which a member of the management team purchases the company from its registered owner. MBO’s usually occur in private companies in an effort to enhance profitability and simplify strategies.

art
  • 25 May 2023
  • Employment

Carer’s Leave Bill set to become law

On 19 May 2023, the Carer’s Leave Bill had its third reading in the House of Lords, and upon receiving Royal Assent, will become law. There is not yet a date for the implementation of this bill, however it is likely that this will happen relatively quickly upon receiving Royal Assent, so is definitely one to keep an eye on.

art
  • 18 May 2023
  • Immigration

Navigating SOC Codes

When it comes to UK immigration, understanding the intricacies of the system is vital. One significant aspect of the process revolves around Standard Occupational Classification (SOC) codes. SOC codes play a crucial role in determining the eligibility for an individual to apply for a work visa, assessing skill levels, and matching individuals to appropriate job roles.