Tax relief on apprentice wages

• Employers may not need to pay Class 1 National Insurance contributions for an apprentice, where the apprentice: 
•       is under 25 years old
•       is on an approved UK government apprenticeship standard or framework (these can differ depending on UK country)
•       earns less than £967 a week (£50,270 a year)
•       Up to £6196.00 in employer National Insurance saving annually per eligible employee.

Employees will continue to pay the standard rate of Class 1 National Insurance contributions through their salary. Apprentices will not see any reduction in their National Insurance payments, only the employer will benefit from this change.

The apprentice's entitlement to contributory social security benefits, including the State Pension, will not be affected and neither will their entitlement to statutory payments. Existing employees may notice a change to the National Insurance category letter on their payslips.