A Smart Solution: Hire Apprentices Under 25 to Cut NIC Costs
Hiring Apprentices under 25 provides a cost-saving opportunity, while also promoting long-term growth.
Businesses face rising employment costs starting in April 2025. The employer NIC rate will increase from 13.8% to 15%, and the secondary threshold will drop from £9,100 to £5,000.
However, employers are exempt from paying Class 1 NICs for Apprentices under 25 earning less than £967 per week. This exemption can deliver significant annual savings, freeing up resources to invest in areas such as technology, expansion, or staff development.
Reclaim Overpaid NICs: If you’ve overpaid NICs for apprentices in the past, you can reclaim up to six years of contributions using a government tool, offering valuable financial relief to counteract the rising NIC costs.
Additional Grants: Employers hiring Apprentices aged 16-18, or those aged 19-24 with an Education, Health, and Care Plan (EHCP) or care experience, may also qualify for a £1,000 grant, further reducing costs.
Apprenticeship Wage Rate: Apprentices are typically paid at a lower rate than experienced employees, reducing labour costs for organisations. For current National Minimum Wage Rates: National Minimum Wage and National Living Wage rates – GOV.UK
Beyond Savings: Build a Resilient Workforce
Apprenticeships deliver more than just financial relief—they attract motivated talent eager to learn and grow within your company. By training Apprentices, you develop skilled professionals aligned with your business needs, ensuring a future-ready workforce. Recruiting Apprentices provides your future talent pipeline, ensuring smooth succession planning and reduces staff turnover through investing in individuals’ training in line with company and industry needs.
Take Action to Reduce NIC Costs Today
Contact us on 01935 845392 or apprenticeships@yeovil.ac.uk to explore Apprenticeship programmes tailored to your business goals. We’ll help you build a strategy to maximise your savings and develop a skilled, cost-effective workforce that future proofs your organisation.