Care leavers bursary to be made tax and NI exempt

02 May 2023

HM Revenue and Customs (HMRC) confirmed on 28 April 2023 that amended regulations will be introduced to ensure that bursary payments for care leavers will be exempt from income tax and national insurance (NI).

Care leavers, aged between 16 and 24, who enter into an apprenticeship may be eligible for a £3,000 bursary. Under current rules, this would generally be liable for income tax and NI as an employment payment.

The changes, due to commence 1 August 2023, will bring an exemption for income tax and a class 1 NI contribution disregard ensuring that recipients will

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