Hiring veterans: National Insurance relief extended for another year
Newsletter issue – April 2025
Changes to National Insurance contributions for employers have dominated much of the tax news headlines since being announced at the Autumn Budget.
But one element of the rules you may have missed concerns armed forces veterans. If you hadn‘t realised already, there is a relief that applies for businesses employing veterans. And this will apply for one year more at least, the Government has announced. So, the relief stays in place until April 2026.
Under this exemption, employers pay no employer National Insurance contributions up to annual earnings of the Veterans Upper Secondary Threshold of £50,270. To be eligible, employers must have served at least one day in the regular armed forces and completed at least one day of basic training. The relief applies for the first year of their job in a civilian capacity, regardless of when they left the military role.
If the employee leaves their job and then starts another within the qualifying 12-month period, that second employer can claim the relief as well during the set time. And if the veteran has more than one job during that same period, each business they work for can claim the relief.