Government urges businesses to take advantage of National Insurance relief when hiring veterans
06 May 2022
Published in: Member News
Businesses hiring former members of the UK armed forces in their first year of civilian employment can save thousands of pounds through National Insurance relief.
Businesses hiring military veterans can now save their firms thousands of pounds in employee National Insurance contributions, thanks to a scheme launched by the government’s Office of Veterans’ Affairs.
From today (6 April 2022), employers will not have to pay National Insurance contributions for veterans in their first year of civilian employment after leaving the armed forces. Businesses will also be able to claim this relief retrospectively for any qualifying employees who joined their company in the last 12 months.
The tax incentive provides a double boost to businesses - providing them with potential savings of up to £6,200 per employee, while also allowing them to benefit from the fantastic skills and experience that veterans bring.
Businesses could save £2,567 per employee on the average salary in the UK. A business hiring 10 qualifying veterans could save over £25,000.
The policy, which delivers on the government’s manifesto commitment, was launched in April 2021. The move is part of wider incentives to support veteran employability, including the roll out of the ‘Great Place to Work for Veterans’ scheme across government.
This National Insurance contributions holiday provides an incentive for employers to hire veterans. Businesses will benefit from the numerous transferable skills veterans gain in service, including collaboration and dedication.
The relief is available to all employers of veterans, regardless of when the veteran left the regular armed forces, providing that they have not been employed in a civilian capacity since leaving service. The relief will be available to all qualifying veterans each time they leave HM Armed Forces.
Detailed guidance on how employers can claim back national insurance is available here
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