Yesterday (8 March), the government announced tax breaks for employers that hire ex-Forces personnel, in a bid to enable more veterans into work.
As part of the upcoming budget, which will take place on Wednesday (11 March), the government will announce that employers no longer have to pay National Insurance contributions for ex-service employees during their first year of employment with the company.
The announcement is part of the government’s goal to improve support for veterans across the country. The changes mean that employers will save £2,000 in tax for a veteran employed on a £25,000 salary.
Morning. Having a job is the single biggest driver of life chances in Veterans. So we’re waiving National Insurance contributions for employers for the first year that they hire a veteran. Determined this country will top the table on Veterans care. https://t.co/P3UwE3vDh4
— Johnny Mercer (@JohnnyMercerUK) March 9, 2020
The tax break will take effect at the start of the new financial year in April 2021.
It is hoped that the new financial benefits of employing veterans will help to improve employment levels, and change perceptions among employers with regards to ex-service personnel.
Employers are continuing to see the benefits of employing veterans. The skills that veterans gain in the military are invaluable on civvy street: from team work and leadership, to work ethic and communication, veterans make important contributions to the civilian workplace.
At the 75th anniversary of VE Day in May, we will be properly honouring the heroes who served to keep us free at home and abroad. https://t.co/zMHLv8s2Hz
— Rishi Sunak (@RishiSunak) February 23, 2020
Employment can have a transformational effect for veterans, providing meaning and purpose, as well as an outlet for the valuable skills gained during service. Stable employment can also lead to improved mental health, with worries and stresses about finances being alleviated.
As well as the tax break for companies, the government is expected to announce further financial support for veterans causes. The Armed Forces Covenant Fund Trust will be granted £10 million to go towards supporting veterans’ mental health.
There will also be £3 million to go towards building a memorial to the Spitfire fighter plane and all those who were involved in the building and flying of it during World War Two.
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