Tax breaks for businesses who hire veterans could be scrapped under penny-pinching plans

TAX breaks for businesses who hire veterans could be scrapped under penny-pinching plans.

Under new rules introduced by Rishi Sunak in 2020, bosses who hire ex forces personnel do not have to pay NICs for the first year of their work.

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The tax cut – a 2019 manifesto pledge – is due to finish in April next year.

The Sun on Sunday has learnt the government is launching a consultation on its future – and some insiders believe the plan is to scrap the tax cut.

Shadow Defence Secretary John Healey warned No11 not to axe the tax cut.

He said: “Veterans clearly make a massive contribution to any business who hires them and we should support those who have bravely served our country transition into civilian life.”

“Our veterans need proper employment support and recognition, which this Tory government is failing to provide.”

HMRC have always loathed the tax break – moaning that it is hard to administer.

It is well documented that many veterans can find hard to get a job after leaving service.

A Tory source said: “People trust us to support our ex-Service personnel, and the best way to do it is through hand-ups, not handouts. 

“I can’t see a good reason to get rid of the scheme, especially if we want to see more SMEs hiring veterans .”

The relief will be “reviewed” in 2023 to see if the tax break should be ditched or extended.

The move is separate to the Budget, which is being unveiled by Chancellor Jeremy Hunt later this month.

Writing for The Sun on Sunday today, ex Cabinet minister Simon Clarke urges No11 to spike the planned corporation tax hike and to freeze fuel duty to help Brits struggling with the cost of living crisis.