PAYE70285 - PAYE operation: specific employments: Freeports and Investment Zones Employer NICs Relief

Freeport and Investment Zone special tax sites are part of the government’s work to ‘level up’ and boost economic activity across the UK.  They will have different economic regulations than the rest of the country and will be innovative hubs, boost global trade, attract inward investment and increase productivity.  In doing so, the government wants special tax sites to generate employment opportunities to the benefit of some of the most deprived communities around the UK.

Employer National Insurance Contributions (NICs) is included in Freeport and Investment Zone special tax sites and employers with a business premises within a special tax site are able to apply a zero rate of secondary Class 1 National Insurance contributions on the earnings of new employees who spend 60% or more of their working time within the special tax site. This rate can be applied on the earnings of all new hires up to £25,000 per annum for 36 months per employee. Guidance is available for employers to self-assess eligibility to claim this relief. This change in rate sees all employers based within and employing people working within a special tax site geographic area, apply a zero-secondary rate of employer NICs for such employees’ earnings above the secondary threshold up to and including a new Freeport and Investment Zone Upper Secondary Threshold. 

The relief will be available for all new hires from 6 April 2022 until the 30 September 2031 for English Freeport tax sites and 30 September 2034 for Scottish Green Freeport, Welsh Freeport and Investment Zone special tax sites for the full 36-month period.