The UK Government has launched a consultation which seeks views about a National Insurance Contributions (NICs) holiday for employers who hire former members of the British regular Armed Forces.
The measure will introduce a Secondary Class 1 Employer NICs relief on the wages of veterans for the first 12 months of their civilian employment and will be available to employers from April 2021.
Contributions from employers of veterans, software providers and accountants about the scheme’s implementation are being encouraged.
Those who have served in the Armed Forces have significant qualities and attributes which should be maximised within wider society and the economy.
And securing successful employment is one of the fundamental elements which allow those who have served in the Armed Forces to make a successful transition back to civilian life.
The Government says more should be done for veterans to help them secure employment following their military service.
It is committed to ensuring that veterans have access to support should they need it throughout their lives and also to ensuring that individuals leaving the Armed Forces are as prepared as they can be for this.
This includes continuing to challenge perceptions about veterans and tackling the barriers which some business organisations feel they can face in employing veterans.
The measure which would see incentivising organisations to employ veterans through the provision of a NIC holiday for their first 12 months of employment was announced at Budget 2020 in March.
It will exempt employers for any NICs liability on veteran’s salary up to the Upper Secondary Threshold in their first year of civilian employment.
From April 2022, employers will claim this relief through PAYE in real time; however, transitional arrangements will be in place for the 2021-2022 tax year.
To read the full HMRC consultation click here: GOV.UK.
For queries about the consultation please email: email@example.com