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HMRC powers for NIC
09 August 2021 Julia Ascott, Employment Taxes Specialist
The National Insurance Contributions Bill 2021 includes new measures on NIC reliefs under the freeport and veterans schemes, as well as imposing reporting requirements on employers for arrangements that aim to avoid NICs. HMRC have issued a technical note explaining how they intend to use the powers in the NIC Bill 2021. We have not commented on the Freeports relief as they will not be relevant to universities but if you would like to find out more, please contact Julia.
Veterans’ relief for employers
0% rate of employer NIC applies for the first year of civilian employment (up to £5k pp)
Runs from 6 April 2021 to 5 April 2024 but Government will consider an extension to the relief in 2023
HMRC has identified a very small number of employers may not be able to claim the relief in ‘real time’ where an employee qualifies for multiple NIC categories. In these cases, relief will be available to claim at the end of the tax year
An Upper Secondary Threshold (UST) will be set at the level of the current under 21 UST for 2021/22 and 2022/23 tax years (currently £50,270)
Disclosure of NIC avoidance arrangements
Current levels of power for NIC are restricted to the disclosure of information to income tax avoidance arrangements
The NIC Bill 2021 widens the scope of powers to impose reporting requirements for arrangements that aim to avoid NIC
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09 August 2021 
Julia Ascott, Employment Taxes Specialist
