At Spring Budget 2020, the Chancellor announced the introduction of a National Insurance holiday for employers that hire former members of the UK regular armed forces. The holiday will exempt employers for any National Insurance contributions liability on veteran’s salary up to the Upper Secondary Threshold (UST) in their first year of civilian employment.
This relief will be available from April 2021. Employers will be able to claim this relief for 12 months starting from the first day of the veterans first civilian employment after leaving Her Majesty’s armed forces. Subsequent employers will be able to claim this relief during this 12 months period.
A full digital service will be available to employers from April 2022; however, transitional arrangements will be in place in the 2021 to 2022 tax year which will effectively enable employers of veterans to record details of veteran’s employments to then, claim the holiday relief from April 2022.
Please let us know if you employ Veterans.
