NI Holiday Relief
The government in the 2021 budget announced a National Insurance holiday for the employers employing veterans in their first year of civil employment. This was implemented live from April this year. There was also an announcement that a further NI holiday scheme will be implemented in 2022 for the newly announced UK Freeports.
However, the eligible employers must pay the associated Secondary Class 1 National Insurance Contributions (NICs) as usual for the first year of the policy’s implementation and they will be able to claim it back from April 2022. The employer will be able to claim NI for the veterans by submitting RTI through the introduction of a new veteran-specific NIC letter-V. They will be able to reduce their NI contributions for the individuals who will qualify up to the Upper Secondary Threshold.
Whereas Freeports will be covered under the NI category-F and will have a new upper threshold.