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HMRC internal manual

National Insurance Manual

Class 1 structural overview: abolition of secondary NICs for apprentices under the age of 25: Apprentice Upper Secondary Threshold

From April 2016 a new secondary Class 1 threshold was introduced for employers of certain apprentices under the age of 25. This is called the Apprentice Upper Secondary Threshold (AUST).

The AUST is set at the same amount as the Upper Earnings Limit (UEL) for 2016 to 2017 tax year (£827 per week or it’s prescribed equivalent).  However, there is no statutory link between the UEL and AUST.

The AUST will only be used for these new category letters (NIM01310) and will be up-rated annually.

The AUST caps the level of earnings at which the 0% rate of secondary Class 1 NICs applies. Earnings above this threshold will be assessed at the main secondary Class 1 rate of National Insurance.

These examples (NIM01311) demonstrate how the AUST works.