Summary and Background The age-related secondary percentage
10.In his Autumn Statement on 5 December 2013, the Chancellor of the Exchequer announced that the Government would bring forward legislation that will effectively remove the requirement for employers to pay secondary Class 1 NICs in respect of the earnings of any employee under the age of 21. The measure will apply both to new and existing employees aged under 21 with effect from 6 April 2015 and will be restricted to earnings below an amount equal to the Upper Earnings Limit (UEL) which is forecast to be £813 per week (annual equivalent £42,285) in 2015-16.
11.The Act also provides for a regulation making power, exercisable by the Treasury, to add an age group to those in respect of whom a reduced rate of secondary Class 1 NICs applies (“the age-related secondary percentage”) and to specify what that reduced rate is and to reduce (or further reduce) the age-related secondary percentage for a previously specified group.