Tax cuts for employers of armed forces veterans

Tax cuts for employers of armed forces veterans

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A National Insurance contributions holiday for businesses who employ armed forces veterans came into force on 6 April 2021.

The scheme allows employers to claim National Insurance contributions relief for veterans they have hired during their first year of civilian employment after leaving the armed forces.

Minister for Defence, People and Veterans Johnny Mercer said: “Veterans have an immense range of skills and unique experience to bring to civilian life.

“This National Insurance contributions holiday will reward employers for backing our veterans, while also extending employment opportunities for many talented veterans in this country.”

Employers will qualify for National Insurance contributions relief for up to 12 months when hiring veterans who are working in a civilian job, during their first 12 months of employment post-service.

The relief is available to all employers of veterans regardless of when the veteran left the regular armed forces, providing that they have not been employed in a civilian capacity since leaving service. The relief will be available on all qualifying veterans each time they leave HM Armed Forces.

Employers will be able to claim National Insurance contributions relief on the earnings of qualifying veterans. A person qualifies as a veteran if they have served at least one day in the regular armed forces. This includes anyone who has completed at least one day of basic training.

Detailed guidance on how employers can claim back national insurance is available at

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