Changes to the National insurance contributions (NIC) system will come into place from the 6th of April 2015. Every employer with employees under the age of 21 will no longer be required to pay class 1 secondary NIC’s on earnings up to the upper earning limit for those employees. The Upper earnings limit for Class 1 Secondary National Insurance is anything equal to or above £815 per week, £3532 per month or £42,385 per year. This is aimed to reduce youth unemployment by encouraging employers to recruit those aged under 21.
This new measure is expected to directly affect around 340,000 employers. Employers must ensure that the correct NIC letter is applied to each employee that is under 21 for these changes to take place correctly. In the majority of cases payroll software will be able to implement the exemption automatically, however we advise to double check this before submitting any payroll in April. |
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If you are looking for your business to grow, and it has the potential to do so, there is every chance you will accelerate that growth by working with a growth coach. Growing can be painful, there will be hurdles to overcome and changes to be made.
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Payroll and Auto Enrolment
Employing people can cause stress for a business owner for many reasons and one of these is payroll. Our teams expect that they will be paid on time and with the correct level of deductions made. We can provide a full payroll service for your business including auto-enrolment, keeping you compliant with your many legal responsibilities.
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