New NI break for employers
NI holiday. Following up on an election promise the government has proposed that from 6 April 2021 employers who take on former members of the armed forces will not have to pay employers’ NI contributions on their wages for twelve months. For example, this would save an employer around £2,250 based on an annual salary of £25,000. The exemption will be limited to the NI upper earnings threshold, currently £50,000 per year. Normal NI rates would apply to pay in excess of that.
Claims procedure. The claims procedure probably won’t be integrated into payroll software in time for 6 April and so you’ll have pay NI contributions as usual and claim a refund at the end of the tax year. Detailed information on the proposed NI break can be found in government’s consultation paper (see The next step ).
For a link to the consultation paper, visit http://tipsandadvice-tax.co.uk/download (TX 20.21.08).