Reminder to claim NI relief for employing veterans
Since April 2021, companies can claim class 1 secondary (employer’s) national insurance contributions relief for veterans in their first year of civilian employment. This relief applies to the veteran’s upper secondary threshold of £50,270 per year.
If the employee previously had NI category ‘A’ applied, you can claim the contributions paid for veterans in the 2021/22 tax year through payroll reporting. You will need to submit a final payment submission after the 6th April 2022 using NI category letter ‘V’. If your payroll software will not allow this letter, you will need to submit your claims to HMRC in writing.
From 2022 the relief can be applied in real time using NI category ‘V’ for veteran employees.
In order to qualify, a veteran must have served either one day of service in the regular armed forces or have completed one day or more of basic training for the armed forces.
You can claim this relief up to a year from the date you employ a veteran in their first civilian job, no regardless of when they left the forces.
Additionally, this relief can be claimed by more than one employer in the event that a veteran leaves their first job and is hired again within their first year of civilian employment. However, it can only be claimed by the second employer for the remainder of the 12 month period.