Employee reaches 16
There is no NICs liability for employees aged under 16.
If one of your employees reaches 16, and your payments to them equal or exceed the Lower Earnings Limit, you will have to start working out employer's and employee's National Insurance contributions (NICs) based on their gross pay and recording the details on form P11.
We have a flowchart you can use to identify the appropriate NICs category letter to use for these calculations - use the link below.
You should deduct PAYE tax regardless of an employee's age, once their earnings exceed their personal allowance.
More about NICs rates and limits
