HMRC have concluded their consultation entitled 'Supporting veterans' transition into civilian life through employment' and released both comments and draft legislation for further consultation.
This policy will give civilian employers of veterans relief from Secondary Class 1 National Insurance Contributions (NICs) up to the level of the Upper Secondary Threshold (currently £962 per week) for the first year of the employment.
The proposed legislation provides:
- The relief will apply from 6 April 2021, but employers NIC will need to be paid for the year and reclaimed post 6 April 2022.
- From 6 April 2022, the relief should be available through the PAYE.
- The relief will create a nil rate band for Employers NIC up to the level of the Upper Secondary Threshold for the first year of employment.
- A qualifying veteran will have been a member of the Regular Armed Forces and have completed at least one day of basic training.
- It will not matter when the veteran left the armed forces.
The measure will apply from 6 April 2021 until 5 April 2024. HMRC will assess the relief in line with the policy objectives to determine whether it will be extended.
The legislative consultation runs to 8 March 2021.
Useful guides on this topic
External links
Supporting veterans' transition to civilian life through employment
Draft legislation: zero-rate secondary Class 1 contributions for veterans
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