Freeport Employer NI Relief Calculator
Calculate employer National Insurance savings for businesses in UK Freeport and Investment Zone tax sites. Zero-rate employer NIC applies on qualifying employee earnings up to £25,000 per year until April 2031.
Frequently Asked Questions
What is the Freeport employer NIC zero rate?
Businesses in designated UK Freeport or Investment Zone tax sites can pay zero employer National Insurance on qualifying new employees earning up to £25,000 per year. The relief applies to new employees starting work at the site from April 2022, for up to three years per employee, until April 2031.
Which UK Freeports qualify for the NIC relief?
The designated Freeport tax sites include: East Midlands Airport, Humber, Liverpool City Region, Plymouth & South Devon, Solent, Thames, Teesside, and Inverness & Cromarty Firth (Scotland). Investment Zones with similar reliefs were announced in 2023.
Is the zero rate automatic or does it need to be claimed?
The relief is claimed by the employer through Real Time Information (RTI) payroll submissions. Employers must indicate that an employee qualifies for the Freeport NIC zero rate when submitting PAYE information. HMRC will verify eligibility.
What conditions must employees meet?
The employee must: (1) start a new job at the qualifying tax site, (2) spend at least 60% of their working time at the site, (3) not have worked for the same employer in the previous 24 months. Existing employees transferred to the site don't qualify.
Does the cap of £25,000 apply per employee?
Yes — the zero rate applies only to the first £25,000 of annual earnings per qualifying employee. Earnings above £25,000 are subject to normal employer NIC at 13.8%.
Do Investment Zones offer the same NIC relief?
Yes — Investment Zones designated after 2023 offer an equivalent employer NIC zero rate. The zones differ by location (e.g., manufacturing, technology clusters) but the NIC relief structure is similar to Freeports.
Are there other tax reliefs in Freeport tax sites?
Yes — in addition to NIC relief, Freeport tax sites offer: 100% enhanced structures and buildings allowance, enhanced capital allowances (plant and machinery), Stamp Duty Land Tax relief, and business rates relief (100% for 5 years in many sites).
What records must employers keep?
Employers must keep evidence that: the employee works at the qualifying site, the 60% working time test is met, and the employee is new to the role. HMRC can request records during compliance checks.