Veterans National Insurance category

This national insurance rate was introduced in 2021/22. It gives Employers NICs relief when employing individuals that were previously members of the armed services. Employers have been able to claim this relief through PAYE since April 2022.

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

Qualifying employees

Assign qualifying employees to the new NI category - V.

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.

Further information

For more information about Veterans National Insurance, visit the Gov.uk page >