Employers National Insurance Contributions Relief for Veterans

As an employer you may be eligible to claim National Insurance Contributions (NIC) relief for any veterans you have employed. The relief has been available to employers since April 2021 for employee veterans who left the regular UK armed forces or who are members of the Reserve Forces on or after 6 April 2014.  The relief is available for the first 12 months of the veteran’s civilian employment and applies to any earnings under £50,270 per year. If a veteran’s earnings are above the threshold, employers can apply the relief on the part of earnings below the threshold.

An employee qualifies as a veteran if they have:

• Served in the UK armed forces for at least one day or completed at least one day of basic training.
• Been honorably discharged within the last 5 years.
• This is the veterans first civilian job since they left the regular armed forces.
• The relief is available for any type of veteran including those who have served in the regular or reserve forces, regardless of length of service.

Claiming NIC Relief

From April 2022 onwards the relief can be applied in real time by using National Insurance category letter V for qualifying veteran employees. To claim relief for previous tax years employers needed to pay the associated NIC as normal and then claim it back. HMRC provides guidance on how to do this, including the address for single and multiple claims as well as what information is needed for making a claim for previous years.

If we manage your payroll for you, please let us know if you employ any veteran’s so we can apply any NIC relief due. To find out more about our payroll services, please contact Julie Hunter on 0131 317 7377 or email Julie.hunter@jsca.co.uk

The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice.  Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.

Photo by Roberto Catarinicchia on Unsplash