Measure

Miscellaneous NIC reliefs – Hiring veterans, Freeports & Investment Zones

The measure

Relief for employer NICs upon hiring qualifying veterans has been extend by a further year to 5 April 2025. Employers pay no employer NICs up to the upper secondary NICs threshold (£50,270 for 2023/24) for a year from a qualifying veteran’s first day of civilian employment. 

The sunset date for Freeport tax relief is to be extended from five to ten years now ending 30 September 2031, for sites in England subject to agreement of delivery plans with the government. End dates for sites in Scotland and Wales will be also extended from five to ten years, subject to agreement of their devolved administrations. 

Similarly Investment Zone tax reliefs have been extended from five to ten years, again subject to agreement of delivery plans with various authorities including the Scottish and Welsh governments. 

In both cases, Freeport and Investment Zones, relief for employer’s NICs currently available on the earnings of eligible new employees that start by 5 April 2026 will continue to apply for 36 months per employee, within the extended window to 30 September 2031.

 

Who will be affected?

Employers recruiting veterans. 

Employers recruiting employees in designated Freeports and Investment Zones.

 

When will the measure come into effect?

Extension for veterans will be effective 6 April 2024. 

Extension for Freeports and Investment Zones to apply from 6 April 2026 with legislation expected in 2024.

Our view

This is a welcome extension of these reliefs for employers committing to recruitment of veterans and also those locating their operations in Freeports and Investment Zones.