NIM01435 - Class 1 structural overview: Zero-rate of contributions for Armed Forces Veterans: 2021-2022 claims
National Insurance Contributions Act 2022 (NICA 2022)
The NICA 2022 provides the zero-rate of contributions for Armed Forces Veterans to the 2022 to 2023, 2023 to 2024 tax years and, following an extension of the availability of the relief, the 2024 to 2025 tax year. Specific provisions made at section 6(5) treat any secondary NICs paid in the 2021 to 2022 tax year as not being payable where they were in respect of a qualifying veteran.
Employers who have used category A for an employee where the relief could have been claimed for the 2021 to 2022 tax year are able to recover overpaid secondary NICs paid in the 2021 to 2022 tax year after 6 April 2022.
For the tax year 2021 to 2022 employers should continue to apply the standard category letter for the tax year where there is no veterans equivalent for categories B, T, C, W, J and Q, and claim the relief outside of payroll reporting.
Claims through payroll reporting
An employer can claim the relief by submitting a revised Final Payment Submission (FPS) after 6 April 2022 applying National Insurance category letter V to qualifying veteran employees.
Claims outside of payroll reporting and claims for NI category letters other than A
Employers must write to HMRC from 6 April 2022 to request relief if they are unable to self-serve through payroll reporting or where there is no veterans equivalent for categories B, T, C, W, J and Q.