Companies that hire military veterans can now save their business thousands of pounds in employee national insurance contributions, thanks to a scheme launched by the government’s Veterans Affairs Office.
From today (April 6, 2022), employers will no longer have to pay National Insurance contributions for veterans in their first year of civilian employment after leaving the armed forces. Businesses will also be able to claim this relief retrospectively for any eligible employee who joined their business within the last 12 months.
The tax incentive gives businesses a double boost – giving them potential savings of up to £6,200 per employee, while also allowing them to benefit from the fantastic skills and experience that veterans bring.
Companies could save £2,567 per employee on the average UK wage. A company hiring 10 qualified veterans could save over £25,000.
Minister of Defence, People and Veterans Affairs Leo Docherty said:
Our veterans have made important contributions to the security of our country. The skills they learn while serving are invaluable, and businesses can greatly benefit from their dedication.
I encourage all companies to consider hiring veterans and supporting their journey into post-service civilian life.
Lucy Frazer, Treasury Financial Secretary, said:
If it weren’t for our heroic military protecting our country, we wouldn’t have a UK to live in.
This is why, as a society, we must do all we can to help them when they return home – UK employers can benefit from the vast wealth of knowledge, skills and experience of our veterans. to help their organization grow and prosper.
The policy, which upholds the government’s manifesto commitment, was launched in April 2021. The move is part of wider incentives to support veteran employability, including the rollout of the Great Place to Work for Veterans scheme. “across government.
This suspension of national insurance contributions encourages employers to hire veterans. Companies will benefit from the many transferable skills veterans learn in service, including collaboration and dedication.
Relief is available to all employers of veterans, regardless of when the veteran left the regular armed forces, provided they have not been employed in a civilian capacity since left the service. The relief will be available to all eligible veterans whenever they leave Her Majesty’s Armed Forces.
Employers will be able to claim National Insurance contribution relief on the earnings of eligible veterans. A person is considered a veteran if they served at least one day in the regular armed forces.
Detailed guidance on how employers can claim National Insurance reimbursement is available here.