A Lasting Tax Relief for Hiring Veterans

Remember the exciting tax relief introduced in 2021 to encourage employers to hire armed forces veterans? Well, good news! It's not just a flash in the pan – this valuable initiative is still going strong in the 2023/24 tax year and beyond.

Here's how it benefits you, the employer:

• Reduced National Insurance Contributions (NICs): When you hire a veteran in their first civilian job after leaving the forces, you only pay the higher rate of NICs on their salary exceeding a specific threshold. Think of it as a built-in discount on your NIC bill!

• First Job Focus: This relief applies only to the veteran's first civilian job, no matter when they transitioned from the military.

• Flexible Timing: The relief lasts for the veteran's first year of employment, starting from April 6, 2021. Even if they started before that date, the benefit kicks in from April 6, 2021.

• Multiple Jobs, Multiple Benefits: If the veteran changes jobs within the relief period, the new employer also enjoys the NICs reduction. And, if they have multiple jobs during that time, every employer qualifies!

• No Burden on Veterans: This benefit applies only to your NICs, not the veteran's salary. They pay regular employee contributions like any other employee.

Claiming Made Easy:

• From 2022/23 Onwards: The relief is automatically applied through your payroll system. Remember to use category "V" for eligible veterans. After the relief period ends, their category will revert to the standard "A".

• For Some Situations: If the veteran doesn't fall under the standard category system, don't hesitate to contact HMRC directly to claim the relief for earlier years.

Hire a Veteran, Make a Difference:

By welcoming veterans into your workforce, you're not just gaining dedicated and skilled employees, you're also supporting those who have served our country. This tax relief makes it even more rewarding to open your doors to former heroes. So, join the movement and enjoy the benefits of hiring veterans – they're an asset to any team!

Remember, this relief doesn't just benefit your wallet, it also helps those who deserve our support. Don't miss out on this opportunity to make a difference!