³ÉÈËÓ°Òô

Armed forces


Produced by a Tolley Employment Tax expert
Employment Tax
Guidance

Armed forces


Produced by a Tolley Employment Tax expert
Employment Tax
Guidance
imgtext

There are special tax rules that apply to members of the regular UK armed forces, reserve and auxiliary forces, and members of visiting forces.

For all categories of UK service personnel, the basic rule is that all pay, pensions and other income is taxable as employment income, liable to national insurance contributions (NIC) and subject to PAYE. However, there are some particular exemptions for payments and benefits that would normally appear to be taxable. These are described below. Unless otherwise stated, exemptions for NIC also apply where there is an exemption from tax. For more, see Simon’s Taxes E4.746.

Zero-rate of secondary Class 1 contributions for armed forces veterans

The Government introduced a zero rate of NIC for employers of veterans in their first year of civilian employment from April 2021. This removes any employer’s NIC liability on the veteran’s salary up to the upper secondary threshold (see the Overview of NIC Classes, rates and thresholds guidance note for rates).

The legislation initially applied for the three years up to 5 April 2024. However, as confirmed in Autumn Statement

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
TAKE A FREE TRIAL NOW
Powered by
  • 20 Mar 2025 15:52

Home/ Tolley Tax Guidance/ Employment Tax / PAYE for employees

Popular Articles

Owner-Managed Businesses

Allowable deductions for employee-related expenses

Allowable deductions for employee-related expensesThis guidance note covers the tax treatment of some common types of trading expenditure relating to employees. Some of these are disallowable under general principles, for example the wholly and exclusively test or capital versus revenue expenditure.

14 Sep 2022 09:49 | Produced by Tolley Read more Read more
Corporation Tax

Overseas property businesses for companies

Overseas property businesses for companiesOverviewReal estate income is generally taxed where the property is located; the UK tax treaties generally allow the jurisdiction where the land is located to tax income from the land.Therefore, a UK company with overseas property may be subject to tax in

14 Jul 2020 12:22 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax, part of AMS Group Read more Read more
Corporation Tax

Computation of corporation tax

Computation of corporation taxCompanies pay corporation tax on the taxable total profits (TTP) generated in a chargeable accounting period (CAP).To ascertain whether the entity is within the charge to corporation tax, see the Charge to corporation tax guidance note.For more information on the type

14 Jul 2020 11:16 | Produced by Tolley Read more Read more