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Section 8 of the National Insurance Act 2022 (NICA 2022)

From April 2021, a new secondary Class 1 threshold where the zero-rate of contributions for Armed Forces Veterans was claimed. This is called the Veterans Upper Secondary Threshold (VUST).

»Ê¹ÚÌåÓýapp VUST was set at the same amount as the Upper Earnings Limit (UEL). However, there’s no statutory link between the UEL and VUST.

For the purposes of section 6 of NICA 2022, for the tax years beginning with 6 April 2021, 6 April 2022, 6 April 2023 and 6 April 2024 the Veterans Upper Secondary Threshold is £967 (per week).

»Ê¹ÚÌåÓýapp prescribed equivalent for earners paid monthly is £4,189 and for earners paid yearly is £50,270.

»Ê¹ÚÌåÓýapp VUST caps the level of earnings at which the 0% rate of secondary Class 1 NICs applies. Earnings above this threshold will be assessed at the main secondary Class 1 rate of National Insurance.

You can find the NICs category letter for Veterans at NIM01430.

»Ê¹ÚÌåÓýapp examples at NIM01445 demonstrate how the VUST works.