In the autumn statement the Government announced that the Veterans NI relief scheme will be extended until April 2026. However, there is research that shows that uptake is very low, so maybe it’s time to see if you can benefit. Find out what the benefits of the scheme are, how you claim the relief and what support is available to recruit veterans.
The benefit, which was first introduced in April 2021, gives employers a 0% rate of NI on the first £25,000 of a veteran’s salary for the first twelve months of employment in their first job as a civilian. Taking into account the secondary threshold, this equates to a saving of £3,000 across the year. Given the recent increase in employers NI to 15%, and the decrease in the secondary threshold from £9,500 to £5,000, this could become valuable for smaller companies, but how can you make use of it?
The 12-month qualifying period is set and does not change if either the veteran employee’s employment ceases or their employer changes. To qualify as a veteran the employee must have either served at least one day in the regular armed forces or completed at least one day of basic training.
This means that, where an employee has more than one job, each employer can claim the relief at the same time for the same employee. If the employee ceases one employment and starts another, the subsequent employer can claim the relief until the end of the qualifying period, but the employer will need to find out the date when the veteran was first employed.
In order to benefit from the relief for a qualifying veteran, you will need to amend the FPS submission and alter the NI category letter to V. Your payroll software should have a function to allow for this. You will need to keep records of the evidence of eligibility such as a P45, discharge letter, an ID card showing their time in the forces, and also evidence of the start date of their employment. You will need to keep records for four years.
Recruiting Veterans
When it comes to recruiting veterans, the government initiative Op ASCEND has been set up to assist veterans and employers looking to become “veteran friendly”. As an employer you will need to sign up to the scheme via the website. To sign up you simply need to provide your contact details, company details (name, organisation type, sector, location) and the types of roles you are trying to fill.
Once you are registered you will be assigned an Employer Partnership Manager who can guide you through the best paths to recruiting veterans including:
- advice and guidance on the development or expansion of a military employment pathway for your company
- support for your company in the adoption of veteran-friendly practices
- providing access to veteran talent pools and job advertisement boards
They also offer the opportunity to attend networking events to raise your company profile within the military community, should you wish to.
Additional sources of assistance are also available from armed forced charities such as the Veterans Foundation, Royal British Legion and the Forces Employment Charity who can also help you find and recruit suitable candidates who would be eligible for the benefit.