A National Insurance contributions holiday for businesses who employ armed forces veterans came into force on 6 April 2021.
The policy, which delivers on the “government’s manifesto commitment”, allows employers to claim National Insurance contributions relief for veterans they have hired during their “first year of civilian employment after leaving the armed forces”.
According to the HMRC, the move is part of the government’s commitment to make the UK the “best place in the world to be a veteran” and will help further “incentivise employers to take advantage of the wide range of skills and experience that ex-military personnel offer”.
Employers will be able to claim National Insurance contributions relief on the earnings of qualifying veterans.
A person qualifies as a veteran if they have “served at least one day in the regular armed forces”. This includes anyone who has completed at least one day of basic training.
Chancellor Rishi Sunak said: “We will always support our veterans, who have risked their own lives to keep our country safe, and this tax cut will give them a crucial helping hand getting them into the workplace after leaving service.”
Johnny Mercer, minister for defence, people and veterans added: “This National Insurance contributions holiday will reward employers for backing our veterans, while also extending employment opportunities for many talented veterans in this country.”