NIM01309 - Class 1 structural overview: abolition of secondary NICs for apprentices under the age of 25: Apprentice Upper Secondary Threshold

Section 9B(4) of the Social Security (Contributions and Benefits) Act (SSCBA) 1992

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 was set at the same amount as the Upper Earnings Limit (UEL). However, there’s no statutory link between the UEL and AUST.

The AUST is uprated 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.

You can find the NICs category letters for apprentices at NIM01310.

The examples at NIM01311 demonstrate how the AUST works.