NIM01299 - Class 1 structural overview: abolition of secondary NICs for those employees under the age of 21: assessment
The examples below use the rates that apply for the 2025 to 2026 tax year.
Example 1
A monthly paid employee is under the age of 21 at the time earnings of £1,600 are paid. The earnings fall below the Upper Secondary Threshold (UST).
| Threshold | NICs calculation | NICs due |
|---|---|---|
| Primary | £1,600 − £1048 = £552 × 8% | £44.16 |
| Secondary | £1,600 − £417 = £1,183 × 0% | £0 |
| Total NICs due | £44.16 |
Example 2
A monthly paid employee is under the age of 21 at the time earnings of £5,000 are paid. The earnings are above the monthly UST.
| Threshold | NICs calculation | NICs due |
|---|---|---|
| Primary | £4,189 - £1048 = £3,141 x 8% | £251.28 |
| Primary | £5,000 - £4,189 − £811 × 2% | £16.22 |
| Secondary | £4,189 - £417 = £3,772 x 0% | £0 |
| Secondary | £5,000 − £4,189 = £811 × 15% | £121.65 |
| Total NICs due | £389.15 |