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National Insurance Contribution savings for apprentices under 25

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From 6th April 2016 businesses that employ Apprentices aged under 25 may not need to pay employer Class 1 National Insurance contributions.

To qualify the apprentice must be:

  • Aged under 25
  • Following an approved UK Apprenticeship framework or standard.

If your apprentice meets these conditions then employers will need to have evidence to claim the relief. This can either be:

  • A written agreement between the employer, apprentice and training provider that details the scheme the apprentice is on, and the start and expected end date
  • in England and Wales, evidence the apprentice receives government funding

Employers meeting all these conditions can use a new National Insurance category letter, which is H.

What should you do?

If you already employ an Apprentice then speak to your training provider to ensure that you have the necessary evidence to apply the relief.

Why hire an apprentice?

  • You can grow your team while keeping costs down
  • You can develop and mould them to meet your needs
  • They’ll add new skills and energy into your team
  • You’ll provide the opportunity to start a great career

If you are thinking about employing an apprentice then together with the other great benefits apprentices bring to your organisation, this saving is another great reason to recruit.

Further guidance on the National Insurance savings can be found on the government website. Or download our factsheet about the National Insurance Contribution savings.

For further information on the levy or on setting up an Apprenticeship programme please contact cassandra.macdonald@kaplan.co.uk.

Cassandra MacDonald is Head of Professional Services Apprenticeships at Kaplan.