Abolition of young apprentice NI contributions for firms

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Apprentice NI contributions have been abolished for under-25s (image credit: iStock/monkeybusinessimages)

Businesses across the UK that employ apprentices under the age of 25 will no longer be required to pay National Insurance (NI) contributions for them.

Announced by the Department for Business, Innovation and Skills (BIS), the new policy came into effect from April 6th and means that companies that are investing in training young talent will now receive a welcome boost to their finances.

Aimed at ensuring companies of all sizes are receiving better value from their investment in the next generation of skilled professionals, the government continues to amend the rules surrounding apprenticeships to make the creation of these positions more attractive to both companies and young people alike.

Outlining the government's stance, skills minister Nick Boles commented: "We're making it even better value for businesses to take on a young apprentice. Businesses will no longer need to pay National Insurance contributions for apprentices under 25.

"Apprenticeships make sense for young people and for business. If you're an employer not already reaping the benefits, now is the time to act."

The exemption now applies to both existing employers with apprentice programmes and those taking on a new apprentices in the months and years ahead.

It adds to efforts currently in the pipeline for the increased rollout of apprenticeship training across the UK, including the setting up of a new Institute for Apprenticeships, which the BIS hopes to bring online by April 2017.