What is Veterans' National Insurance Relief?

Full Definition

Veterans' National Insurance Relief lets an employer apply a 0% rate of secondary (employer) Class 1 National Insurance on the earnings of a qualifying veteran, up to the Upper Secondary Threshold for Veterans (aligned with the standard Upper Earnings Limit of £50,270 for 2026/27), for the whole of the veteran's first 12 months of civilian employment after leaving the armed forces -- in place of the normal employer NI rate of 15% above the £5,000 secondary threshold that would otherwise apply from the first pound earned above that threshold. A 'qualifying veteran' is broadly someone who has served at least one day in the regular armed forces (Royal Navy, Army or Royal Air Force), including as a member of the reserve forces called up for full-time service; the relief applies to their first civilian job after leaving service, and can be used by more than one employer in succession if the veteran changes jobs within that first year, provided each employer applies the correct National Insurance category letter (category V) on their payroll. Employer relief does not reduce the veteran's own employee National Insurance or Income Tax, both of which continue to apply as normal -- the saving is entirely on the employer side, intended to reduce the cost to businesses of hiring recently-left service personnel and support their transition into civilian employment. The relief must be claimed through normal payroll software using the correct NI category, and employers should keep evidence of the veteran's discharge date to support their eligibility if HMRC queries the claim.

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