Hi Jan,

 

From 6 April 2016, you no longer have to pay employer's NI contributions for apprentices under the age of 25, on earnings up to a new Apprentice Upper Secondary Threshold (AUST). To accommodate this, you should use the new NI category, H, for apprentices under the age of 25.

 

If you have any employees aged under 25 who you employ as an apprentice, to ensure their NI calculates correctly, you must change their NI category in your software before you begin processing in the new tax year.

 

• Sage 50 Payroll - Select the relevant employee > Employee > Employee Record > Employment > NI Category > choose NI category H > Save > Close.
• Sage Instant Payroll - Employee > Maintain existing employees > select the relevant employee > Employment Details > NI Category > choose NI category H > Save details > Close Existing Employees screen.

 

The 'Apprentice' box on the New Employee wizard flags the employee as an apprentice.

 

Full info on changes to NI categories for apprentices and contracted out employees from 6 April 2016 here.

 

Regards,

 

Paul

Sage GB

Hi Paul,

I have already entered NI category H for both apprentices as they are under 25 but just wondered what the apprentice box did.

I have subsequently found this in the employee record and it asks for the start and end date so I assume if I enter these, the system will notify me of the need to change the NI category when they finish their apprenticeship or when they turn 25, whichever happens first.

Many thanks

Jan

Hi Jan,

Yes thatâ€s correct, whichever of these occurs first.

Regards,

Paul
Sage GB