NIC Relief if Employing Veterans

A new National Insurance Contributions (NICs) holiday for employers who hire former members of Her Majesty (HM) armed forces came into force on 6 April 2021. This allows employers to apply a zero rate of secondary Class 1 Employer NICs on the earnings of veterans during the first year of their civilian employment post-service. The zero rates apply up to the Veterans Upper Secondary threshold (currently £50,270 per annum).

Since 6 April 2022, employers can claim this relief in real-time by submitting Real Time Information (RTI) returns. Employers who used this relief in 2021-22 can claim back the relief retrospectively for any qualifying employees who joined their company in the last 12 months.

Employers can claim this relief for the 12-month period starting on the first day of the veteran’s first civilian employment after leaving the regular armed forces.

An employee qualifies as a veteran if they have either:

• served at least one day in the regular armed forces

• completed at least one day of basic training

The relief is available to a veteran who has started their first civilian job regardless of when they left the regular armed forces.