From 6th April 2021, employers who hire former members of the UK regular armed forces will be able to claim a National Insurance holiday for 12 months starting from the first day of the veteran’s first civilian employment.
This zero-rate can be applied up to the veterans upper secondary threshold.
This relief is available from April 2021. From April 2021 to March 2022, employers will need to pay the associated secondary Class 1 National Insurance contributions as normal and then claim it back retrospectively from April 2022 onwards.
From April 2022 onwards, employers will be able to apply the relief in real time through PAYE.
Further information on how employers will be able to claim it back will be published before April 2022.
PAYadvice.UK 19/3/2021 updated 25/3/2021