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Relief applies to recruitment of former members of the UK regular armed forces

The Chancellor announced the introduction of a national insurance contributions (NIC) holiday for employers that hire former members of the UK regular armed forces. The relief is available to all employers of veterans, regardless of when the employee left the regular armed forces, provided they have not previously been employed in a civilian capacity.

The relief will be available from April 2021. A full digital service will be available to employers from April 2022 and transitional arrangements will be in place in the 2021 to 2022 tax year. This means that from April 2021 to March 2022, employers will need to pay the associated secondary Class 1 employer’s NIC.

From April 2022, employers will be able to claim back the associate NIC that would have otherwise been relieved. Employers will need to keep records that demonstrate they are eligible for relief for those periods.

Find out more at GOV.UK.

This article has been shared from ACCA In Practice, to whom copyright belongs.  Whitefield Tax are an ACCA Member Firm