Are You Missing Out on Thousands in NI Savings?
If you’re an employer in the UK, there’s a strong chance you’re overpaying National Insurance Contributions (NICs) for your apprentices — and you may be eligible to claim a refund for both current and past tax years. With upcoming increases to Employer NICs and minimum wages in April 2025, it’s more important than ever to leverage the support available through government-backed apprenticeship schemes.
At Zenith Training, we help businesses unlock these savings while investing in workforce development.
The NI Exemption: What You Need to Know
For apprentices under the age of 25, you may not need to pay Class 1 Employer NICs, provided they:
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Are under 25 years old
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Are enrolled in a UK government-approved apprenticeship standard or framework
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Earn less than £967 per week (or £50,270 annually)
This exemption can apply to both newly hired apprentices and existing staff undergoing upskilling.
How to Reclaim Overpaid NICs
A. For the Current Tax Year (2024/25)
You can correct your payroll submissions (FPS) and:
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Apply the NIC exemption going forward.
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Adjust previous NIC overpayments via your payroll software.
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Deduct the overpaid amount from your next PAYE payment to HMRC.
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If you’re no longer employing staff, HMRC may issue a refund via cheque or bank transfer.
B. For Past Tax Years (Up to 4 Years)
HMRC allows corrections back to 2020/21, and here’s how:
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Review your payroll to identify NIC overpayments.
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Submit an EPS (Employer Payment Summary) for the relevant tax years, ticking the exemption for under-25 apprentices.
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If adjustments via EPS aren’t possible, contact HMRC directly at 0300 200 3200 or write to them with full details.
C. Over 4 Years?
Refunds are generally not available beyond four years unless HMRC was at fault, but you can still dispute it with clear documentation (e.g., apprenticeship agreements, payroll records).
Massive Cost-Saving Potential
With the employer NIC rate rising to 15% in April 2025, the financial benefits of enrolling under-25 apprentices are staggering.
| Apprentice Salary | Annual Employer NIC | 5 Apprentices | 10 Apprentices | 20 Apprentices |
|---|---|---|---|---|
| £45,000 | £6,000 | £30,000 | £60,000 | £120,000 |
| £30,000 | £3,750 | £18,750 | £37,500 | £75,000 |
| £15,704 (min wage) | £1,606 | £8,030 | £16,060 | £32,120 |
This is a win-win: employers save money while staff earn industry-recognised qualifications on the job.
Boost Workforce Skills with Zenith Training
Zenith Training offers a wide variety of apprenticeships to suit your business needs, including:
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Customer Service Practitioner (L2) – 12 months
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Sales Executive (L4) – 18 months
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Team Leader (L3) – 12 months
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Lean Manufacturing Operative (L2) – 12 months
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Content Creator (L3) – 15 months
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Coaching Professional (L5) – 14 months
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And many more…
Our training isn’t just about compliance — it’s about real growth for your people and your bottom line.
You can find official guidance on National Insurance contributions for apprentices under 25 on the UK government’s website:
Learn More: National Insurance contributions for apprentices
This page outlines the eligibility criteria for the Employer NIC exemption, how to apply it through your payroll, and how to correct overpayments.
For more detailed information on National Insurance rates and categories, including the exemption for apprentices under 25, you can also refer to:
Learn More: National Insurance rates and categories
Take Action Now
The sooner you act, the more you save — especially before the 4-year reclaim window closes for older tax years.
Email: info@zenithtraining.org.uk
Call: 0191 428 6555
Visit: www.zenithtraining.org.uk
Don’t leave money on the table. Reclaim what’s rightfully yours and empower your workforce with skills for the future.