NIM01309 - Class 1 structural overview: abolition of secondary NICs for apprentices under the age of 25: Apprentice Upper Secondary Threshold
Section 9B(4) of the Social Security (Contributions and Benefits) Act (SSCBA) 1992
From April 2016, a new secondary Class 1 threshold was introduced for employers of certain apprentices under the age of 25. This is called the Apprentice Upper Secondary Threshold (AUST).
»Ê¹ÚÌåÓýapp AUST was set at the same amount as the Upper Earnings Limit (UEL). However, there’s no statutory link between the UEL and AUST.
»Ê¹ÚÌåÓýapp AUST is uprated annually.
»Ê¹ÚÌåÓýapp AUST caps the level of earnings at which the 0% rate of secondary Class 1 NICs applies. Earnings above this threshold will be assessed at the main secondary Class 1 rate of National Insurance.
You can find the NICs category letters for apprentices at NIM01310.
»Ê¹ÚÌåÓýapp examples at NIM01311 demonstrate how the AUST works.