Veterans National Insurance (NI) category

The veterans NI category came into effect in the 2021/2022 tax year. It gives Employers NI relief when employing individuals that were previously members of the armed services.

Eligibility

• The employee must have previously served at least one day in the regular armed forces
  • This includes anyone who has completed at least one day of basic training
• The employment must be within the qualifying period
  • This starts on the first day of the veteran’s first civilian employment since leaving the armed forces, and ends 12 months later

If it's the veterans first civilian employment since leaving the regular armed forces, relief is available to the employers.

Qualifying employees

Assign qualifying employees to the NI category V.

1. Double-click the relevant employee on your employee list.
2. Go to the Employment tab.
3. Use the NI Category dropdown to set their category as V.
4. Complete the First Day of Civilian Employment field that appeared when you selected category V.
   
   TIP:

   This date needs to be on or before the Start Date in the employee's record.

5. Select Save then Close.

NI Category V Rates

You can view the rates in your software:

1. Click Payroll then Change Process Date.
2. Set the process date in the tax year you'd like to check.
3. Click Company, then Legislation.
4. Click the NI tab.
5. Click the National Insurance Category drop-down and select V - Standard Rate Contributions for Veteran employees.