The Education and Skills Funding Agency (ESFA), an executive agency of the Department for Education, has been making, since August 2018, a one-off bursary payment, known as the care leaver's apprenticeship bursary payment, to individuals aged 16–24 leaving local authority care to begin an apprenticeship.
Whilst not an employer payment, it is likely that such a bursary would, in the absence of an exemption, fall within the general charge to tax on employment income and also constitute earnings for NIC purposes. An exemption for income tax was introduced from 2020/21 onwards1, and a corresponding exemption for Class 1 NIC was introduced by regulations from 29 September 20202. For payments made before the statutory exemptions took effect, HMRC exercised its
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Web page updated on 17 Mar 2025 14:04