Are you trading in a Freeport tax area? NIC Relief available for employers

The Government have announced a new zero rate of secondary Class 1 National Insurance Contributions (NICs) for eligible employers on the earnings of eligible employees working in a Freeport tax site.

In Great Britain (England, Scotland and Wales), this will provide those employers with physical premises in a Freeport tax site (Freeport employees) with a zero rate of secondary Class 1 National Insurance Contributions on the earnings of new employees who spend 60% or more of their working time within a Freeport tax site.  This rate can be applied on the earnings of all new hires up to £25,000 per annum from 6 April 2022 for 36 months per employee.  Legislation to introduce the relief is included in the National Insurance Contributions Bill 2021.

This measure is in addition to the tax breaks and Customs Duty exemptions announced in the March Budget for businesses operating in these designated areas.

The first eight Freeports announced in the Budget are located at:

East Midlands Airport
Felixstowe and Harwich
Humber
Liverpool City Region
Plymouth and South Devon
Solent
Teesside
Thames

See:

https://www.gov.uk/government/publications/zero-rate-of-secondary-national-insurance-contributions-for-freeport-employees/zero-rate-of-secondary-nics-for-freeport-employees

As always, if you have any questions at all, please don’t hesitate to contact us.

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