Are you missing out on National Insurance relief for Apprentices under 25?
If you employ apprentices under the age of 25, you could be missing out on an important National Insurance relief that can reduce your employment costs. Many businesses are unaware that they do not have to pay Class 1 secondary National Insurance contributions (NICs) on qualifying apprentices but it’s a benefit worth knowing about.
What is the National Insurance Relief for Apprentices under 25?
As an employer, you do not have to pay Class 1 secondary National Insurance contributions on the earnings of an apprentice under 25, up to the Upper Secondary Threshold. For the 2025/26 tax year, this threshold is £967 per week or £50,270 per year.
To qualify for this relief:
- The employee must be under 25 years old.
- They must be on an approved government apprenticeship framework or standard.
- You must hold evidence of their apprenticeship agreement, including the expected end date.
Why this relief is often missed
Many business owners and internal payroll teams are not aware of this exemption or do not realise that it needs to be applied correctly through their payroll software. Unfortunately, that means many businesses end up paying more National Insurance than they need to.
We regularly speak to businesses who were eligible for this relief but had never claimed it because they simply didn’t know it existed or weren’t sure how to apply it.
How BAS Associates ensures you don’t miss out
At BAS Associates, we automatically apply this National Insurance relief for apprentices under 25 for all payroll clients who are eligible. Our payroll team is fully trained and up to date with HMRC guidelines, so you can rest assured that you are claiming everything you are entitled to.
It’s just one of the ways we make sure your payroll is compliant, cost-effective, and tailored to the needs of your business.
Not sure if you qualify?
If you currently employ an apprentice under the age of 25 or are planning to hire one soon, and you are unsure if you’re eligible for this National Insurance contribution relief, we can help.
Whether or not we currently manage your payroll, we’re happy to review your position and let you know if this or any other payroll relief could apply to your business.
Get in touch with our friendly payroll team to find out more.
Visit HMRC here to read their advice.
BAS Associates is a family-run, local accountancy practice supporting sole traders, limited companies, partnerships and individuals with their accounts, payroll, and tax returns. Based in Wingrave, we work with clients across the Home Counties and beyond.
