The one-year employer NIC holiday, for recruiting veterans started this April 2021. This employment tax holiday intends to encourage businesses to employ Armed Forces veterans, and was formally announced by the Chancellor of the Exchequer in the Spring Budget of 2020. This was one of a number of measures recommended by FSB and XFE to stimulate the employment of veterans in small business in Britain. It is important to spread this message so that employers gather and track the appropriate employment date to make the claims accordingly.
More than a third of small business owners say that employing veterans resolves skills shortages. The move will benefit businesses, veterans and the economy.
FSB’s research finds that more than one-in-ten (12%) of Britain’s small businesses have employed an Armed Forces veteran in the last three years, with manufacturing the most common sector (20%) followed by Wholesale, Retail and Repair (15%) and Professional, Scientific and Technical (11%). Among those employing veterans, the benefits they have found include resolving skills shortages (35%), improving team performance (27%) and providing fresh perspectives and creative ideas (26%).
Ren Kapur MBE, FSB’s volunteer Armed Forces champion and CEO of X-Forces Enterprise (XFE), said:
“FSB and XFE have been working together, through research, reporting and lobbying, to get this noticed at the highest levels, keeping the pressure on through various ministerial changes within government. The culmination of this collaboration means that all businesses across the UK, irrelevant of size, can support the service leaver whilst boosting business. This could be the ‘sea change’ required to enhance the success of transitioning, for those either looking for jobs or being hired in Armed Forces led businesses. This employer tax relief potentially makes more money available to support onboarding and training.”
Craig Beaumont, Chief of External Affairs at FSB, said:
“The most recent policy change XFE and FSB have championed together impacts far beyond armed forces owned businesses, reaching many of the UK’s 1 million small employers, who from April 2021, recruit from the armed forces veteran community.”
Johnny Mercer MP (former Minister for Defence, People and Veterans), said:
“This policy change is great evidence of what we can do collaboratively across the armed forces community to find new and innovative ways to make the UK the best place in the world to be a veteran.
All employers of veterans are encouraged to work with their company accoutnant to make this happen. Read the full Government policy paper here to see how you or your business can benefit from this major policy change.