This new code affects apprentices that are under 25 and will mean that the employee pays NIC whereas the employer does not.
When you Qualify
To qualify for the NI code letter H you must be an apprentice under 25 and you must have an apprenticeship end date. Without an end date you cannot qualify for the code letter. When an individual does qualify the employer will not have to pay NI for the employee.
Within the QTAC Payroll Software
When your employees are migrated over to the new version of the software, the 1718 version you will have to set each employee who is eligible for the code letter in employee maintenance. You will have to add in a “Date Apprenticeship Ends” in “Employee Maintenance > General”. As soon as an employee turns 25 they will be automatically put onto an NI code letter of A by the QTAC software.
NOTE: Be aware that while the software will change the NI code, it will not change any pay rates. It will instead give you a prompt notifying you the rate needs to be amended.
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Qtac, a recognised payroll solutions provider in the UK, has been serving businesses for 30 years. Specializing in both payroll software and outsourced payroll services, Qtac caters to small businesses, large corporations, and payroll bureaux. Our software, recognised by HMRC, streamlines the payroll process, featuring RTI submissions, workplace pensions management, and a cloud-based portal for payslips and employee self-service. This software is supported by top-tier customer assistance, ensuring a smooth payroll experience.
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