Draft legislation: zero-rate secondary Class 1 contributions for veterans
Consultation description
This is a technical consultation on draft legislation that will mainly be of interest to employers, accountants and tax specialists.
These draft clauses will enable employers to apply a zero-rate of secondary Class 1 Employer National Insurance contributions (NICs) on the earnings of veterans during the first year of their civilian employment. It is intended this will provide employers with a relief worth up to £5,000 for each qualifying veteran they hire.
A veteran will qualify if they have completed at least one day of basic training in Her Majesty바카라 사이트™s regular armed forces. Employers will be able to claim this relief for the 12-month period starting on the first day of the veteran바카라 사이트™s first civilian employment since leaving the regular armed forces.
Subsequent and concurring employers will be able to claim the relief during this period. This zero-rate will apply up to the Upper Secondary Threshold.
Further detail on how employers will claim this relief will be published shortly.
A public consultation for this measure was held in Summer 2020, and a summary of responses has been published.
On this page, you can read:
- the draft legislation
- a technical overview of the legislation
This measure is intended to take effect from 6 April 2021.
You can read about National Insurance contributions relief for employers who hire veterans on 바카라 사이트.