Summary and Background Zero-rate secondary Class 1 contributions for apprentices under 25
10.The Government announced at Autumn Statement 2014 that it would introduce a zero-rate of secondary Class 1 NICs on earnings paid to apprentices under the age of 25 from 6 April 2016. Secondary Class 1 NICs are the contributions paid by employers and others who pay earnings. The zero-rate will apply to earnings up to the upper secondary threshold (to be provided for in regulations), for those employees.
11.The Act introduces the zero-rate and also provides for regulation-making powers exercisable by the Treasury to:
	define apprentice;
	vary the age group for which the zero-rate applies; and
	introduce an earnings threshold above which the zero-rate would not apply.