National Insurance Contributions holiday for employers who hire former members of the armed forces

Feb 08, 2021

At Spring Budget in March 2020, the UK Government announced its intention to introduce a National Insurance Contributions (“NICs”) holiday for employers who hire former members of the UK regular armed forces. The Government has now published responses from the consultation which sought views on this proposal together with the policy’s draft legislation on which views are currently being sought until 8 March 2021.

The relief will exempt employers for any NICs liability on veteran’s salary up to the Upper Secondary Threshold in their first year of civilian employment. It will be available to employers from April this year and transitional arrangements will be in place for the 2021/2022 tax year, ahead of employers being able to claim the relief through PAYE in real time from April 2022. Further details about the relief for employers are due to be to be published shortly.