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
- 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.