Hiring Veterans: Don’t Forget to Claim National Insurance Relief

Businesses hiring veterans are encouraged to take advantage of a new National Insurance relief scheme that could save them thousands of pounds in employee NI contributions and enable them to benefit from the many transferable skills brought by ex-service members.

Since 6th April 2022, employers no longer have to pay National Insurance contributions for veterans in their first year of civilian employment after leaving the armed forces.

Importantly, businesses are also able to claim this relief retrospectively for any qualifying employees who joined the company in the last 12 months.

This National Insurance relief is available to all employers of veterans, for one year, from the date a veteran starts their first civilian job, regardless of when the veteran left the armed forces, as long as they have not been employed in a civilian capacity since leaving HM Armed Forces.

A qualifying veteran must have served at least one day in the regular armed forces.

If the veteran employee has more than one job, each employer can claim relief for the same employee.

Should the employee leave one job and start another within the first year of eligibility, the veteran’s new employer can also claim for the remainder of the employee’s first year of civilian employment.

There is little doubt that military veterans can greatly enhance a business thanks to the transferable skills they’ve gained in service and this new National Insurance scheme gives businesses an even greater incentive to hire ex-service members.

According to the UK Government website: “The tax incentive provides a double boost to businesses – providing them with potential savings of up to £6,200 per employee, while also allowing them to benefit from the fantastic skills and experience that veterans bring. Businesses could save £2,567 per employee on the average salary in the UK. A business hiring 10 qualifying veterans could save over £25,000.”

Claims can now be made through payroll reporting to recover the secondary NIC paid for qualifying veterans in the 2021/22 tax year. For 2022/23 onwards, the relief can be applied in real time.

If you would like more advice on how to claim this National Insurance relief through your payroll, particularly with regards to retrospective claims, then contact our payroll team today on 0161 249 504 or email: partners@leonherman.co.uk

The UK Government’s website has the full policy details here: “National Insurance contributions relief for employers who hire veterans

Disclaimer

This material is published for information only. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. No responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by Leonherman.

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
READ NEXT...
To get a-head in business, subscribe