NIM01311 - Class 1 structural overview: abolition of secondary NICs for apprentices under the age of 25: assessment

The examples below use the rates that apply for the 2021 to 2022 tax year.

Example 1

A monthly paid apprentice is aged 23 at the time earnings of £1,600 are paid. The earnings fall below the Apprentice Upper Secondary Threshold (AUST).

Threshold	NICs calculation	NICs due
Primary	£1,600 − £797 = £803 × 12%	£96.36
Secondary	£1,600 − £737 = £863 × 0%	£0
Total NICs due	£96.36

Category H should be used.

Example 2

A 17-year-old apprentice is monthly paid at the time earnings of £5,000 are paid. The earnings are above the monthly AUST.

Threshold	NICs calculation	NICs due
Primary	£4,189 - £797 = £3,392 x 12%	£407.04
Primary	£5,000 − £4,189 = £811 × 2%	£16.22
Secondary	£4,189 − £737 = £3,452 × 0%	£0
Secondary	£5,000 − £4,189 = £811 × 13.8%	£111.92
Total NICs due	£535.18

Category H should be used.

Example 3

A monthly paid apprentice turns 25 on 15 June 2021. They are paid £1,400 on 30 June 2021.

Threshold	NICs calculation	NICs due
Primary	£1,400 − £797 = £603 × 12%	£72.36

Secondary NICs

As payment is made on 30 June 2021 and the apprentice is now 25 years old, the zero rate of secondary NICs up to the Apprentice UST is no longer available. All NICs should be assessed at category A.

Threshold	NICs calculation	NICs due
Secondary	£1,400 − £737 = £663 × 13.8%	£91.49

Total NICs due

Threshold	NICs due
Primary	£72.36
Secondary	£91.49
Total NICs due	£163.85