The CIOT has responded to HMRC’s consultation on the proposed 12-month secondary class 1 NICs holiday for employers hiring veterans from April 2021. In summary, the CIOT supports the proposal and believes the relief should be available to as many veterans as possible, and suggests that:
all civilian employments should be eligible to qualify for the relief, it should be capped at the NIC upper secondary threshold, and should be available from April 2021;
operating the relief for 12 months from the veteran’s first day of civilian employment strikes the right balance between simplicity, administrative costs, and support for veterans;
although relief for the 2021/22 tax year may need to be claimed back after the end of the year, the government should consider allowing employers to implement processes to enable in-year claims; and
HMRC and the MOD should establish a notification system for all eligible personnel leaving the armed forces, and HMRC should build a system that allows employers to confirm eligibility of veterans.
The CIOT has responded to HMRC’s consultation on the proposed 12-month secondary class 1 NICs holiday for employers hiring veterans from April 2021. In summary, the CIOT supports the proposal and believes the relief should be available to as many veterans as possible, and suggests that:
all civilian employments should be eligible to qualify for the relief, it should be capped at the NIC upper secondary threshold, and should be available from April 2021;
operating the relief for 12 months from the veteran’s first day of civilian employment strikes the right balance between simplicity, administrative costs, and support for veterans;
although relief for the 2021/22 tax year may need to be claimed back after the end of the year, the government should consider allowing employers to implement processes to enable in-year claims; and
HMRC and the MOD should establish a notification system for all eligible personnel leaving the armed forces, and HMRC should build a system that allows employers to confirm eligibility of veterans.
