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

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