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National Insurance Contributions for veterans

From 6th April 2021, the government introduced a zero rate of employer’s Class 1 National Insurance contributions for qualifying veterans. If you employ veterans in your organisation, there are some things you need to know.

What is a qualifying veteran?

A qualifying veteran is an employee who has either:

  • served at least one day in the regular armed forces, or

  • has completed at least one day of basic training.

The relief is only available to veterans who have started their first civilian job after leaving the regular armed forces. It does not matter when they left the forces.

What relief can be claimed?

The relief only applies to the employee’s earnings below the Veterans’ upper secondary threshold (which is £967 per week or £4,189 a month for 2022/23). The relief can only be claimed for the first 12 months of the veteran’s first civilian employment.

How to claim relief

To claim relief for 2021/22, a Final Payment Submission should be submitted after 6th April 2022 using the National Insurance category letter V. Claims for 2022/23 can be made in real time, again using the category letter V.

If you need any help, please feel free to contact our Tax Advisor Steve Tetley on 01482 296023 or at Steve.Tetley@rradar.com.