Budget 2025 – Veterans NIC relief extended.
In April 2021, the government introduced a new National Insurance Contributions (NICs) relief designed to support veterans transitioning into civilian employment. This initiative created a brand-new NIC category — Category ‘V’, specifically for employers hiring former members of the UK regular armed forces.
Originally, this relief was due to end on 5 April 2026, but there’s good news: the government has announced a final two-year extension, taking the scheme right through to the 2027–2028 tax year, with a new end date of 5 April 2028.
What does this mean for employers?
It means they can continue to benefit from saving the 15% employer NIC contribution for qualifying veterans during their first year of civilian employment. Importantly, the veteran themselves still pays their standard National Insurance contributions — the relief applies only to the employer.
This extension gives businesses more time to support veterans and benefit from the skills, discipline, and experience they bring to the workplace.
It means they can continue to benefit from saving the 15% employer NIC contribution for qualifying veterans during their first year of civilian employment. Importantly, the veteran themselves still pays their standard National Insurance contributions — the relief applies only to the employer.