Employers NIC break for younger staff

Employers NIC Break for Younger Staff

Hiring younger staff just became more cost-effective for employers. From 6 April 2015, businesses can benefit from a significant change in National Insurance rules. Known as the Employers NIC break for younger staff, this policy eliminates the need for employers to pay class 1 secondary National Insurance Contributions for employees aged under 21. This move is designed to reduce costs for employers. Simultaneously, it will encourage youth employment, and provide financial relief for businesses investing in younger talent.

This new zero-rate policy applies to earnings up to the new Upper Secondary Threshold (UST). For 2015/16, the UST aligns with the Upper Earnings Limit (UEL). But it is important to note that there is no statutory link, meaning thresholds could differ in future tax years. Employers should stay updated on these changes to maximise their savings and ensure compliance.

How We Can Help

At Lewis Brownlee, we specialise in helping businesses navigate complex tax and employment rules. Our team can guide you in understanding and implementing the Employers NIC break for younger staff, ensuring your business takes full advantage of this cost-saving opportunity. We’ll help you optimise payroll processes, monitor thresholds, and adapt to changes in National Insurance regulations.

Get in touch with us today to learn how we can help your business grow while staying compliant with the latest rules. Let us make tax and payroll management simpler and more efficient for you.