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Children, young people and apprentices

Created on  | Last modified on 

Summary

How to correctly process these employees in Sage Payroll.

Description

If the person is under 16

  • They don't pay National Insurance (NI)
  • Don't enter an NI number for them
  • If they earn below their tax threshold, you don’t have to add them to the payroll

NOTE:

Tax threshold for 2026/2027 is £12,570.00

  • If you do add them to the payroll, use tax code 1257L and NI category M

Age 16 and upwards

  • Add to the payroll
  • If they have no NI number, leave the NI number box in their record blank
  • Add them using the P46 declaration

Apprentices

  • Add to the payroll
  • If they have no NI number, leave the NI number box in their record blank
  • Add them using the P46 declaration
  • Use NI category H (Apprentice under 25)

It is your responsibility to pay the apprentice at the correct rate.

For more information, read Paying apprentices the correct national minimum wage.