The Exchequer Secretary to the Treasury (Mr David Gauke)
The Government are tabling an amendment to the National Insurance Contributions Bill today ahead of Report and Third Reading of the Bill on 10 December 2013.
As the Chancellor made clear during the autumn statement, for the first time employers will not be required to pay employer class 1 NICs in respect of the wages they pay to employees under the age of 21 up to the equivalent of the upper earnings limit. The Government believe that this measure will make it cheaper to employ those under the age of 21 and support almost 1.5 million young people currently in employment. It will apply both to new and existing employees that are under 21 years of age with effect from 6 April 2015.
I am placing copies of the commentary on the amendments and tax information impact note in the Libraries of both Houses. I have also deposited these documents for the amendments to the partnerships provisions in the Bill.