Consultation launched: National Insurance Contributions holiday for employers that hire veterans

The government is seeking views about a National Insurance Contributions (NICs) holiday for employers who hire former members of the UK regular armed forces. In particular they are encouraging contributions from employers of veterans, software providers and accountants about the scheme’s implementation.

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 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. 

It also believes that those who have served in the Armed Forces have significant qualities and attributes which should be maximised within wider society and the economy, but that more should be done for veterans to help them secure employment following their military service. 

This includes continuing to challenge perceptions about veterans and tackling the barriers which some business organisations feel they can face in employing veterans. It also includes incentivising them to employ veterans through the provision of a NIC holiday for their first 12 months of employment. 

This measure is one of a number which demonstrate the strength of the commitment by the Government to creating the conditions for veterans to find and secure sustainable high quality employment. The measure, announced at Budget 2020 in March, will exempt employers for any NICs liability on veteran’s salary up to the Upper Secondary Threshold in their first year of civilian employment.

This relief will be available to employers from April 2021. 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 please visit GOV.UK. For queries about the consultation please email:

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By @Cobseo 55 years ago

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