Government consultation: a NICs holiday for employers hiring former members of the UK regular armed forces
22 July 2020
HMRC has published a consultation, with the aim of collating views and opinions from businesses that employ veterans, software providers and accountants on the topic of potentially granting employers a National Insurance Contributions (NICs) holiday where they employ individuals who were previously members of the regular armed forces.
Originally announced back in March 2020, at Budget, the measure would mean that employers would not pay any NICs liability on the salaries of veterans up to the Upper Secondary Threshold for the duration of their first year of civilian employment. This relief would be available to employers from April 2021, with transitional arrangements in place, until April 2022, at which point businesses will have the ability to claim the relief in real time through PAYE.
The consultation asks questions on a variety of issues and about how the government should approach the design and implementation of the policy. The government has placed particular emphasis on how it should seek to define ‘veterans’, employment periods that should qualify and how the measure should be administered.
The CIPP’s Policy and Research team will be responding to this consultation, and will be incorporating the views of payroll professionals on the subject. Please keep your eyes peeled for a survey which will be published in due course, which will query aspects of a potential NICs holiday for employers who hire former members of the UK regular armed forces.
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