Policy background Veterans
The Act introduces a new measure that would meet a government manifesto commitment to a NICs holiday for veterans by introducing a zero-rate of secondary Class 1 NICs relief for employers of armed forces veterans on their earnings for 12 months starting with the first day of a veteran’s first civilian employment after leaving the regular armed forces. Subsequent and concurrent employers can benefit from this relief during this period. The aim of this measure is to reduce the cost of employing a veteran and encourage employment of veterans, to support veterans in transitioning to civilian life. The measure was subject to consultation between 21 July 2020 and 5 October 2020.
	To qualify a veteran must have completed at least one day of basic training in the armed forces. This relief is available to employers from 6 April 2021 to 5 April 2024. The government will review this relief in 2023 and will have the power to extend this relief beyond the 2023-24 tax year.
	From 6 April 2022 employers are able to claim this relief through HMRC’s Real Time Information system. From 6 April 2021 to 5 April 2022, transitional arrangements will be in place so that employers can claim the relief retrospectively for that period from 6 April 2022 onwards.