GET AHEAD WITH APPRENTICESHIPS THIS YEAR AND SAVE ON NATIONAL INSURANCE COSTS
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In the Autumn budget of 2024, the government announced that, starting in April 2025, employer National Insurance contributions will increase from 13.8% on salaries over £9,100 to 15% on salaries above £5,000. Many employers are naturally concerned about this, but what is less well-known, is in that same budget it was also announced that employers are exempt from paying National Insurance (NI) for any apprentice aged 25 or below.
This can result in significant savings – potentially thousands of pounds per apprentice.
The NI exemption applies when using apprenticeships to train new recruits or upskill existing staff. The apprentice must be under 25 and earn less than £967 per week.
For example, if you hire a 25-year-old apprentice on a £20,000 salary, you could save £2,250 in annual NI contributions (this saving ends when the apprentice turns 25). The saving increases to £3,000 for an apprentice earning £25,000 annually.
Apprenticeships, therefore, present a cost-effective way of growing your business and bringing in new talent – and Excel Me can help. For your existing workforce too, apprenticeships provide opportunities for personal development and growth, which is a key pillar for staff retention.
Excel Me is approved by Ofqual to deliver End-Point Assessments for the Level 2 Leisure Team Member, Level 2 Customer Service Practitioner, Level 3 Customer Service Specialist, Level 3 Business Administrator, Level 3 Team Leader or Supervisor and Level 5 Operations Departmental Manager apprenticeships. In December 2024, Excel Me also added the popular new Level 2 Community Activator Coach apprenticeship to its portfolio.
If you are interested in exploring how you can utilise apprenticeships and in turn save £ thousands on NI in 2025 (and beyond), please contact us today via info@excelme.co.uk to see how Excel Me can help.
