Veteran National Insurance

Following on from 2021-2022 where employers were given additional relief for recruiting veterans from the armed forces, the HMRC has provided a separate National Insurance category to use so that the relief to employer National Insurance can be given directly in the payroll. If a veteran is employed, there is significant cost saving for the employer for the first year of the veteran’s civilian employment. The table below gives an example of the savings comparing A category to V category:

Please refer to this /wiki/spaces/FV1OH/pages/2604236935 to obtain more information about the qualification for operating veteran National Insurance. The information below describes the changes in FastTrack360 for using the newly provided category.

Product Changes

Payee Screen - HMRC Details

The National Insurance category list will now display the option of ‘V'If you have an existing payee who is a veteran already on the payroll, you would have used an age appropriate NI category in tax year 2021/2022. The HMRC has now supplied the category of ‘V' so that you can claim relief directly in the payroll. In order to operate the category of ‘V’, you will need to add a new validity period in the HMRC Details section of the payee record for the first pay period of the tax year. Then, in the NI Category list, select 'V’.

When selecting the category of 'V', a new field will display labelled First Civilian Employment Date. This field must be entered when selecting this particular category.

If you have a new payee join your organisation who is a Veteran, when you add their payee record, you will need to select the category of 'V' manually and then add their First Civilian Employment Date.

Pay Period Close

The pay period close in the Pay Group maintenance screen has the functionality to update a payee’s NI category based on their age as at the next period’s pay date. This has been enhanced to update the payee’s NI category to an age appropriate category at 1 year anniversary of the payee’s first civilian employment date.

Claiming for 2021/2022 tax year

If you have recruited a veteran in tax year 2021/2022, you can claim this relief directly via the HMRC by writing a letter to include:

• The reference (heading) ‘Overpaid NI contributions’

• Their employee’s name, date of birth and National Insurance number

• An explanation that they are reclaiming Veteran’s relief

• The period they have overpaid in

• Confirmation that they are claiming for a qualifying veteran and retain evidence to show this (HMRC may request to see this evidence at a later date)

• The account number, sort code and account name for the bank account where they want their refund to be paid

Claims for one employee to be sent to:

HM Revenue and Customs

National Insurance Contributions and Employer Office

BX9 1AN

Claims for more than one employee to be sent to:

HM Revenue and Customs

National Insurance Contributions and Employer Office

BX9 1BX

Health and Social Care Levy - Payslip Message

As highlighted in the Statutory Parameters 2022/23 section, the amount of National Insurance employees and employers make is increasing. This is to help fund the NHS and social care. The HMRC has requested for employers to output a message on payslips for 2022/2023 tax year, where possible, to inform payees of the uplift to contributions. The HMRC has provided a suggested message of:

1.25% uplift in NIC funds NHS, health & social care.

This has automatically been applied to the Pay Company > Payslip Message field in your application similar to the screenshot example below.

It is your decision if you wish to output this message onto your payslips or whether you wish to change it to another message. You are free to remove the message from this section. Please be aware of the following regarding this payslip message:

• It will only display if you have included payslip messages and Pay Company Payslip row in your document format. See an example below in the document format configuration screen:

• If you also have payslip messages in your document format for contractor self bill invoices, the message would also be output.

• If this is the case, and you wanted to output the message to your PAYE employees only, an alternative approach would be:

  • Remove the payslip message from Pay Company > Payslip Details > Payslip Message that has been applied above.

  • Go to your payslip template for your PAYE payees.

  • Click on Payslip Message to highlight the section.

  • In the right hand panel click the plus symbol in Rows/Columns to add another item.

  • Click on the folder to edit the newly created item. This will open up the Field Properties

  • Give it a name e.g. HMRC Message

  • Click on Item.

  • 

  • Click on the ellipsis button (3 dots) against the Database Field. This will open another pop up screen.

  • Image RemovedImage Added

• • Enter the required message in the Text Before field.

  • Click Ok which will close the pop up.

  • Click Ok which will close the Field Properties.

  • Click Save to save the changes. You can preview the output to see your message.