Mandating postcode provision for the Freeports and Investment Zones secondary Class 1 National Insurance contributions relief
This tax information and impact note is about employers operating in a designated special tax site in a Freeport or Investment Zone being required to provide their employee’s workplace postcode to HMRC if they are claiming the secondary Class 1 National Insurance contributions relief through their payroll.
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Since 6 April 2022, employers operating in a designated special tax site in a Freeport can claim a zero-rate of secondary Class 1 National Insurance contributions on earnings of eligible employees between the secondary threshold (to be set at £5,000 from April 2025) and £25,000 per annum, for up to 36 months. From 8 April 2024, this relief also applies to employers operating in a designated special tax site in an Investment Zone.
This measure makes provision to mandate employers who claim the secondary Class 1 National Insurance contributions relief, to also provide their employee’s workplace postcode to HMRC through their payroll. This is information the employer would normally hold as it underpins eligibility to the relief and therefore employers should be able to provide this information at the point of claiming the relief.