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New guidance on freeports NICs relief

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HMRC has published new guidance on claiming relief from employer Class 1 NICs for employees in a freeport tax site. The new guidance sets out the basics: who can claim the relief, how much and for how long, together with worked examples.

Employers who have a business premises in a freeport tax site can claim the relief for all new employees for 36 months from the start of their employment, provided all employees:

  • spend 60% of their working time in the freeport tax site, unless adjustments have been made to an employee’s working arrangement to accommodate disability, pregnancy or maternity;
  • are new employees from 6 April 2022, and before 6 April 2026, within the first 36 months of their employment; and
  • have not been employed by the current employer or a connected employer in the previous 24 months.

Employers will need to pay secondary Class 1 contributions for employees who earn more than the freeport upper secondary threshold of £25,000 per year.

Issue: 1566
Categories: News