Part 1: Secondary Class 1 Contributions Veterans Section 6: Zero-rate contributions for armed forces veterans
Sections 6(1), (2) and (4) provide for a new zero-rate of secondary Class 1 contributions up to a UST for tax years 2022-23 to 2023-24 if the veteran conditions in section 7 are met. Earnings above the UST are liable to secondary Class 1 NICs at the secondary percentage (currently 13.8%).
	Section 6(1)(d) specifies that an employer must elect to apply this relief if the employment also qualifies for other NICs reliefs (under 21, under 25 apprentices and Freeports).
	Section 6(3) specifies that the UST for this relief is the one specified in regulations under section 8.
	Section 6(5) specifies that the relief is available for the 2021-22 tax year retrospectively. In practice, this means that employers need to pay secondary Class 1 NICs as if the relief did not apply, then from April 2022 they can claim the relief for the earnings in the 2021-22 tax year.
	Section 6(6) provides the Treasury with regulation-making powers to add to the tax years set out in section 6(4). This allows the relief to be extended beyond 5 April 2024.
	Section 6(7) states that a person is still to be regarded as liable for secondary Class 1 NICs even though the amount of the contribution is nil because the secondary percentage is 0%. This provision ensures that, whilst the requirement to pay secondary Class 1 NICs in respect of earnings paid to veterans is removed, a technical liability for such contributions continues to arise. As a result, the new zero-rate does not affect other legislation which relies on the existence of a secondary contributor, including the obligation to make statutory payments to employees such as Statutory Sick Pay and Statutory Maternity Pay.
	This relief is administered through PAYE and RTI returns, thus providing a real time relief. Section 6(8) provides the Treasury with the power to make provisions about circumstances where this relief would not apply until the tax year has ended.