Clients hiring veterans to save serious cash on NICs
Businesses hiring military veterans, including umbrella companies and recruitment agencies, can save thousands of pounds in employee National Insurance contributions.
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. 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.
From 6 April 2022, employers will not have to pay National Insurance contributions for veterans in their first year of civilian employment after leaving the armed forces. Businesses will also be able to claim this relief retrospectively for any qualifying employees who joined their company in the last 12 months.
“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,” said HMRC in a statement.
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.
Our veterans have made important contributions to keeping our country safe. The skills they gain during service are invaluable, and businesses can greatly benefit from their dedication.
I encourage all businesses to consider hiring veterans and supporting their journey to civilian life after service.Minister for Defence People and Veterans Leo Docherty
Detailed guidance on how employers can claim back national insurance is available here.
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