NIM01410 - Class 1 structural overview: Zero-rate of contributions for Armed Forces Veterans: application of the zero-rate

Section 6 of the National Insurance Act 2022 (NICA 2022)

Section 6 of NICA 2022 provides for a zero-rate of contributions for Armed Forces Veterans where all of the following conditions are met:

• a secondary Class 1 contribution is payable by an employer,
• the tax week is after 5 April 2021 and before 6 April 2025,
• the Veteran conditions are met in relation to the contribution (see NIM01415), and
• the employer elects that the relief is to apply.

Where section 9(1) of the Social Security Contributions and Benefits Act 1992 (SSCBA 1992) applies, the employer (or, if different, the secondary contributor) may elect to apply the 0% secondary rate under section 6 of NICA 2022.

The 0% rate applies instead of section 9(1) of SSCBA on any earnings paid in the tax week up to or at the Veterans Upper Secondary Threshold (VUST).

The secondary percentage under section 9(2) of SSCBA applies in respect of any earnings paid in the tax week above the VUST.

See NIM01425 for further information about the VUST.