PAYE70223 | PAYE operation: specific employments: National Insurance contributions relief for employers who hire veterans

This relief provides a zero-rate of secondary Class 1 National Insurance contributions (NICs) on the earnings of a qualifying veteran for 12 consecutive months from the first day of their first civilian employment after leaving the regular armed forces. This zero-rate can be applied up to the (new) Veteran’s Upper Secondary Threshold (VUST).

Employers will only be able to claim this relief on the earnings of qualifying veterans. 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 relief is available to all employers of veterans regardless of when the veteran left the regular armed forces, providing they have not previously been employed in a civilian capacity.

This relief is available from April 21, however from April 21 to March 22, employers will need to pay the associated Secondary Class 1 NICs as normal and then claim it back retrospectively from April 22 onwards, through a manual claims process.

From April 22 onwards, employers will be able to apply the relief in real time through RTI.