Government gives tax holiday for veteran employees
15th April 2021
The Government launched a National Insurance holiday for employers who recruit armed forces veterans in a bid to help ex-Service members rejoin the workforce.
The scheme, which launched on 6 April 2021, allows employers to claim National Insurance contributions (NICs) relief for veterans they recruit during their first year of employment after leaving the armed forces.
Chancellor Rishi Sunak said that the policy "marks another milestone in this government delivering on its promises".
He added: "We will always support our veterans, who have risked their own lives to keep our country safe, and this tax cut will give them a crucial helping hand getting them into the workplace after leaving service".
Employers can apply the zero rate on NICs up to the upper secondary threshold, which is currently £967 per week or £4,189 per month.
If a veteran employee's earnings are above this amount, employers can apply relief on the part of earnings that fall below the threshold.
For the financial year of 2021/22, employers will need to pay the secondary class 1 NICs as they would normally and then claim it retrospectively from April 2022 onwards.
Contact us to talk about National Insurance relief.