Policy News Journal - 2015-16

 make a firm approach to another person with a view to making a scheme available for implementation by that person or others

 make a scheme available for implementation by others  organise or manage the implementation of a scheme.

Employer NICS for apprentices under the age of 25 6 July 2015

If you employ an apprentice from April 2016 who is aged under 21 then National Insurance category H should be used rather than category M.

HMRC’s Software Developers Support Team has provided a brief confirming that from 6 April 2016 if an apprentice is aged under 21 category H (apprentice under 25) should be used rather than category M (under 21). The reason for this is to enable HMRC to monitor the amount of employers using the Apprentice secondary Class 1 zero-rate relief. The brief also includes some useful examples on common changes to normal pay, including where payments are mistimed, a birthday occurs and an apprenticeship starts and ends. You can access the brief through the link below.

Apprentices under 25 NICs

CIPP comment HMRC appreciate that there are other scenarios that could be included and would like feedback so please do email policy with your thoughts. Thank you.

Class 1 Employer National Insurance Contributions (NICs) zero-rate for apprentices under 25 27 July 2015

Draft regulations have been published defining 'apprentice' for zero-rate employer Class 1 National Insurance contributions (NICs) for apprentices under 25.

The government has published a technical consultation on draft secondary legislation for the zero-rate of Class 1 employer NICs for apprentices under the age of 25. The consultation will close on 18 September 2015.

The purpose of the regulations is to define the meaning of 'relevant apprentice'. This definition will be used to determine which apprentices under the age of 25 qualify for the zero-rate of employer Class 1 NICs. The definition of apprentices will: a. Include: government recognised apprenticeships in the UK ie those which follow government arrangements/approved frameworks. This includes frameworks or standards recognised by the Skills Funding Agency in England as well as apprenticeship frameworks approved by the Welsh, Scottish and Northern Ireland governments.

b. Exclude: apprenticeships which do not follow government approved frameworks, also known as common law, apprenticeships; and

c. Require that a ‘relevant apprentice’ is one that will have a written agreement, specifying the government recognised apprentice framework/standard, with a start and expected completion date. This will be an agreement, between the training provider, apprentice and employer and will be the evidence the employer needs to retain when applying the zero-rate of employer Class 1 NICs for an apprentice under 25.

CIPP comment

The Policy Team will be asking for member opinion over the next few weeks to help inform the CIPP’s response

CIPP Policy News Journal

25/04/2016, Page 231 of 453

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