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Employer National Insurance relief in Freeport tax sites 01 March 2022
Her Majesty’s Revenue and Customs (HMRC) has published guidance on the topic of claiming relief from employer class 1 National Insurance contributions (NICs) when employing someone in a Freeport tax site.
Eligibility
There’s a reminder that employers can’t claim until the relevant Freeport tax site has been designated. A list of those designated sites can be checked here.
The relief can be claimed by those who have a business premises in a Freeport tax site.
To be eligible, employees must: • Spend at least 60% of their working time in the Freeport tax site. This is unless adjustments have been made to accommodate disability, pregnancy or maternity • Be new employees from 6 April 2022, and before 6 April 2026, within the first 36 months of their employment • Not have been employed by the new Freeport employer or a connected employer in the previous 24 months.
The relief
Employers will only pay secondary class 1 NICs if the employee earns more than the Freeport Upper Secondary Threshold (FUST), which is £25,000 per year for tax year 2022/23.
The relief can be claimed for new employees for a period of 36 months from the start of their employment if they meet the qualifying conditions.
To claim the relief, the relevant NICs category needs to be applied: • F – standard letter equivalent • I – married women and widows entitled to pay reduced NICs • S – employees over state pension age • L – employees who can defer NICs.
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Deferment of payment of class 1 NICs (CA72A) 15 March 2022 The 2022 to 2023 version of form CA72A has been made available online, alongside guidance notes.
The form should be used to apply to defer payment for the tax year spanning from 6 April 2022 – 5 April 2023 only, and applications can be made either online or by post.
To apply online, a Government Gateway user ID and password are required. A user ID can be created during the application process if an individual does not already have one. To apply by post, the relevant form should be printed, completed by hand, and sent to the address provided on the form.
Alternatively, to allow Her Majesty’s Revenue and Customs (HMRC) to liaise with a third party, a form 64 - 8 ‘Authorising your agent ’ must be completed and submitted.
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