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December 13, 2013

NICs for Under 21s To Be Abolished

It was announced in the Autumn Statement 2013 that from April 2015, Employer Class 1 Secondary National Insurance Contributions (NICs) up to the upper earnings limit (£813 per week for 2015/16) are to be abolished for employees under the age of 21

It is thought that this change will reduce the cost of employing around 1.5m young people.

This change follows the introduction of an annual employment allowance (or NI credit) of £2,000 against secondary class 1 NICs which comes into effect in April 2014.

Another important NIC change introduced in the Autumn Statement is the introduction of Class 3A NICs.  This new class of NICs will be introduced in October 2015 and is intended to provide those who reach state Pension age before 6 April 2016 with a chance to increase their entitlement to the State Pension by making additional voluntary National Insurance Contributions.

News & Views from PD Tax - December 2013


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