HMRC has clarified the claim deadlines for the extension to the Freeport and Investment Employer National Insurance Relief.

The new sunset dates for the reliefs are:

  • 30 September 2031 for all special tax sites for English Freeports
  • 30 September 2034 for all special tax sites for Scottish Green Freeports and Welsh Freeports
  • 30 September 2034 for all special tax sites for Investment Zones.

These measures will take effect from 21 May 2024.

Employers who meet the criteria and have a business in the designated Freeport or Investment Zone will be able to claim secondary National Insurance contributions relief when employing new staff in the relevant Tax zones.

Provided the earnings for each eligible employee does not exceed the Upper Secondary Threshold (UST) for the two reliefs set at £25,000 per annum, no employer NIC is payable for each employee up to a period of 3 years.

There is no change to the employee contributions, this will be paid on all relevant earnings where applicable.

Further business tax relief is available to employers who meet the criteria as a means of encouragement to participate in or develop and grow business in Investment Tax sites or employing new staff in Freeport Tax zones.

New employees must spend 60% of their working time at the relevant Freeport or Investment tax zones for the relief to be granted.

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