National Insurance holiday for the employers of veterans - screening equality impact assessment
Screening equality impact assessment for the National Insurance holiday for the employers of veterans.
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With effect from April 2021, the government will introduce a National Insurance holiday for employers that hire former members of the UK regular armed forces.
The holiday will exempt employers from any National Insurance contributions liability on the veteran’s salary up to the Upper Secondary Threshold (UST). The employer will claim by applying a new Veterans National Insurance Contribution Category.
A full digital service will be available to employers from April 2022. However, transitional arrangements will be in place for employers of veterans hired in the 2021 to 2022 tax year (there will be a need for the employer to maintain manual records for year 1 and evidence of veteran status).
Employers should continue to pay Class 1 Secondary National Insurance Contributions as normal and reclaim these retrospectively.