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

Pub
  • 22 September 2023
  • Employment

Talking Employment Law: New family friendly rights

In this first podcast in the ‘Talking Employment Law’ series, Lucy Densham Brown and Rebecca Dowle, members of the employment team summarise some of the big new family-friendly Bills that are working their way through parliament.

art
  • 20 September 2023
  • Commercial Real Estate

Commercial buyers beware of residential Stamp Duty Land Tax

This article discusses a recent case in which a property buyer calculated the Stamp Duty Land Tax due on the purchase at a lower rate, due to the mixed-use purpose of the property.

art
  • 19 September 2023
  • Privacy and Data Protection

Organisations’ use of social media: Data protection

Social media applications (or commonly known as ‘apps’) are being developed all the time and we are constantly being introduced to new social media platforms, some of which take almost no time to gain huge popularity.

art
  • 14 September 2023
  • Immigration

Entrepreneurial Dreams: What is the Innovator Founder Visa?

In an era defined by innovation and entrepreneurship, the United Kingdom has made a substantial effort towards fostering its reputation as a global hub for start-ups and innovators. The introduction of the UK’s ‘Innovator Founder’ route has marked a pivotal moment in the country’s immigration policy.

art
  • 11 September 2023
  • Corporate and M&A

Changes to the tax treatment of Employee Ownership Trusts

The government published a consultation on 18 July 2023 seeking the public’s views on its proposals to reform the tax treatment of Employee Ownership Trusts and Employee Benefit Trusts. Parties are invited to express their opinions via email via the government website until the consultation closes on 25 September 2023.

art
  • 08 September 2023
  • Immigration

Navigating the Latest Immigration Rules for Overstayers in the UK: A Comprehensive Guide for 2023

Staying beyond the expiration of your UK visa is a serious matter that, in most cases, can result in significant and long-lasting repercussions.