From 6 April 2015 employers will no longer have to pay Class 1 secondary National Insurance contributions on earnings up to the Upper Secondary Threshold (UST) for employees under 21 years.
As announced in the Chancellors Autumn Statement 2014, in a move to support young people and ‘make sure that no one is left behind as the economy recovers’, the Government announced plans to make it more affordable for businesses to employ them. From April 2015, Secondary National Insurance Contributions (NICs) will be abolished for employees under 21 for earnings below the Upper Earnings Limit (UEL), which is expected to be £813 per week. The Government stated that State Benefit entitlements would not be affected, meaning that there will still be a requirement to report band earnings, i.e. earnings at the Lower Earnings Limit, Primary Threshold etc.
For further information please click the Abolition of employer National Insurance contributions for under 21s section of GOV.UK that has been updated and now includes more detailed guidance for employers, plus detail on the new category letters and rates.