HMRC abolishes NI for under 21s

Payroll Services news – HMRC abolishes employer NI contributions for under 21s

As a an outsourced payroll service provider, it goes without saying that at JLP Payroll Services we are always prepared and ready to implement the changes that HMRC introduces.

One of the most recent changes was implemented in April 2015, when HMRC abolished employer NI contributions for under 21s. Inevitably, whenever HMRC introduces such changes there is a payroll effect.

If you do your own payroll and have got enough time, you can read the full employers guide by clicking here, where you’ll read about how:

  • Employees under 21 years old will no longer have to pay Class 1 secondary National Insurance contributions (NICs) on earnings up to the Upper Secondary Threshold (UST) for those employees.
  • The zero rate won’t apply to Class 1A or Class 1B NICs. Class 1 secondary NICs will apply if the employee is earning above the UST.

How our Outsourced Payroll Service can help

There’s loads more to read, of course, about how if you employ people aged over 16 but under 21, you’ll have to choose 1 of the 7 new National Insurance categories when assessing their secondary NICs. It also tells you that it is the employer’s responsibility to ensure the correct category letter has been applied based on the age and circumstances of the employee.

At JLP, our outsourced payroll service is designed for SMEs, taking this sort of time consuming, detailed work off your shoulders, so that you can get on with running your business, safe in the knowledge that your payroll is in expert hands.

We email payslips as part of our Payroll Service

To make our service even more efficient, we can now email payslips to you and your employees, password protected for security of course, as part of our outsourced payroll service.

If you think your business would benefit from a quick, efficient and accurate outsourced payroll service, contact us or call us on 0121 422 0550.

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