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Veterans National Insurance rates - 2022/23

Created on  | Last modified on 

Summary

This guide explains the new rates for the Veterans national insurance band for the 2022/23 tax year.

Description

This new national insurance rate was introduced in 2021/22 that gives Employers NICs relief when employing individuals that were previously members of the armed services. From April 2022 onwards, employers can apply this relief through PAYE.

NOTE: Veterans Employers NIC relief for the 2021/22 tax year can't be claimed via Sage 50 Payroll. Instead, you will need to write to HMRC to claim this. For further information visit Gov.uk >

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, which starts on the first day of the veteran’s first civilian employment since leaving the armed forces, and ends 12 months later.

Qualifying employees

Qualifying employees should be assigned to the new NI category - V.

NI Category V Rates

  Employee Rate (%) Employer Rate (%)
LEL up to ST 0.00 0.00
St to PT 0.00 0.00
PT to FUST 13.25 0.00
FUST to UEL/ UST/AUST/VUST 13.25 0.00
Excess of UEL/ UST/AUST/VUST 3.25 15.05

Further information

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

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