axis payroll User Guide Supplement March 2022

5. Claiming Veteran NIC Relief For 2021/2022 Tax Year Through Payroll

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As described in the What's New? section of axis payroll User Guide Supplement March 2022, a 12 month National Insurance holiday for employers of veterans was introduced from 6th April 2021 however the relief could only be claimed through Real Time Information submissions from 6th April 2022 with any earnings of qualifying veterans from 6th April 2021 onwards being eligible for retrospective National Insurance relief. Guidance on claiming the relief is available from HMRC at https://www.gov.uk/guidance/claim-national-insurance-contributions-relief-for-veterans-as-an-employer.

If you wish to claim this relief through RTI you will need to follow the instructions below on or after 6th April 2022 after running your final period end for tax year 2021/2022 but before running your final Calculate Monthly Remittance and proceeding with the year end processes detailed in section 6 of this user guide.

Calculate the value of Earnings and National Insurance contributions which are eligible for zero-rating of secondary National Insurance contributions during tax year 2021/2022 for each veteran using the N.I.C. Year to Date Report.

Use National Insurance Adjustments to reduce the current employee NI category by the values calculated above.

Use Amend Employee NI Category to select category V.

Use National Insurance Adjustments to enter the required Year To Date Totals for category V.

If applicable, i.e. if 'Veteran employment start date' was before 6th April 2021, use Amend Employee NI Category to reset the category.

Run Calculate Monthly Remittance to incorporate adjusted totals.

Use Create RTI Full Payment Submission and Submit RTI Full Payment Submission to send adjusted year to date totals to HMRC. Note: this submission may not be made before 6th April 2022.

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