The new zero rate of secondary Class 1 NICs for businesses which employ armed forces veterans came into force on 6 April 2021 and applies to earnings between the secondary threshold and the upper secondary threshold (UST), with normal employer contributions due on earnings above the UST.
The relief runs for 12 consecutive months from the veteran’s first day of civilian employment and is available to all employers of veterans regardless of when the veteran left the regular armed forces, providing that they have not been employed in a civilian capacity since leaving service.
A person qualifies as a veteran if they have served at least one day in the regular armed forces. This includes anyone who has completed at least one day of basic training. The move aims to incentivise employers to take advantage of the wide range of skills and experience that ex-military personnel offer.
Consultation on the required draft legislation to implement the measure closed on 8 March 2021, and the changes will be introduced formally in new sections 9C and 9D to the Social Security Contributions and Benefits Act 1992.
The new zero rate of secondary Class 1 NICs for businesses which employ armed forces veterans came into force on 6 April 2021 and applies to earnings between the secondary threshold and the upper secondary threshold (UST), with normal employer contributions due on earnings above the UST.
The relief runs for 12 consecutive months from the veteran’s first day of civilian employment and is available to all employers of veterans regardless of when the veteran left the regular armed forces, providing that they have not been employed in a civilian capacity since leaving service.
A person qualifies as a veteran if they have served at least one day in the regular armed forces. This includes anyone who has completed at least one day of basic training. The move aims to incentivise employers to take advantage of the wide range of skills and experience that ex-military personnel offer.
Consultation on the required draft legislation to implement the measure closed on 8 March 2021, and the changes will be introduced formally in new sections 9C and 9D to the Social Security Contributions and Benefits Act 1992.
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")