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HMRC internal manual

National Insurance Manual

Class 1 structural overview: abolition of secondary NICs for those employees under the age of 21: Upper Secondary Threshold

Section 9A (7) Social Security Contributions and Benefits Act 1992 - the age–related secondary percentage

From April 2015 a new secondary Class 1 threshold was introduced to cap the earnings on which the 0% rate applies for employees under the age of 21.  This is called the Upper Secondary Threshold (UST).

The UST was introduced at the same amount as the Upper Earnings Limit (UEL) and will be re-rated annually.

The UST will only be used for employees under the age of 21, it will no longer apply to the employee’s earnings once the employee reaches the age of 21. Thereafter the secondary Class 1 NICs may, depending on the circumstances of the employee, return to the secondary percentage rate of 13.8%.

For examples see NIM01299.