National Insurance Contributions Bill — Clause 7 — Veteran Conditions — 1 Mar 2022 at 18:15

The majority of MPs voted not to empower ministers to extend the period during which employers of someone who has left the armed forces benefit from a reduction in national insurance payable in connection with that person's employment.

MPs were considering the National Insurance Contributions Bill.^[1][2][3]

The motion supported by the majority of MPs in this vote was:

• That this House disagrees with Lords amendment 4.

Amendment 4 stated^[4]:

• Page 5, line 24, at end insert—
• “(3) The Treasury may by regulations amend the period specified in subsection (1)(c) where it believes this will contribute to improved employment and retention rates among veterans.”

Had it not been rejected the amendment would have impacted Clause 7 of the Bill titled: Veteran conditions [2]^[3] and provided for a the zero-rate of secondary Class 1 employer's National Insurance relief in respect of the employment of armed forces veterans for the tax years from 2022-2024.

The subclause 1(c) mentioned in the amendment stated:

• the earnings are paid during the period of one year beginning with the earner’s first day of employment in a civilian capacity since the earner last ceased to be a member of any of the regular forces.

The rejected amendment was accompanied by the following explanatory statement note^[5]:

• Lords Amendment 4 provides the Treasury with the power to extend the eligibility period attached to zero-rate relief for armed forces veterans, should that be deemed desirable to improve the ability of veterans to find long-term employment.

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• [1] Parliament's webpage on the National Insurance Contributions Bill, Parliament.uk
• [2] National Insurance Contributions Bill, as introduced, 7 September 2021, Parliament.uk
• [3] Explanatory notes to the National Insurance Contributions Bill, as introduced, 7 September 2021, Parliament.uk
• [4] Lords amendments to the National Insurance Contributions Bill, 23 February 2022, Parliament.uk
• [5] Explanatory notes to the Lords amendments to the National Insurance Contributions Bill, 23 February 2022, Parliament.uk

Debate in Parliament |