HMRC’s Help with Freeports (GfC14) Updated

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HMRC’s Guidelines for Compliance (GFCs) documents are helpful consolidations of information available in various places on Gov.UK. GfC14 concerns Freeports and outlines the tax reliefs and customs benefits available, how to qualify and the common errors businesses make.

HMRC have made the following changes in Part 2 (Tax reliefs) 

  • The 'Secondary Class 1 National Insurance contributions' section has been amended to make it clear that Primary (employee) Class 1 National Insurance contributions paid by employees do not benefit from tax relief;
  • Guidance has also been added to make it clear that Primary (employee) Class 1 National Insurance contributions paid by employees do not benefit from tax relief;
  • The 'National Insurance contributions category letter' section has been updated so it mirrors HMRC’s internal guidance; and
  • The 2025/26 tax year in the 'How much can I benefit' section has been updated to 2026/27 to bring the guidelines up to date

Within this section are questions to ask before claiming the relief:

  • Question 6 (‘Is the employee within the first 36 months of their employment with you?’) has been updated to make it clear what period the claim can made for;
  • Question 7 (‘Was your business premises located in a Freeport special tax site when the employment started or following a substantial change?’) contains an example that has been updated to make it clear what period the claim can made for;
  • Question 8 (‘Are the employee’s earnings above the Freeport Upper Secondary Threshold?’) has been updated to make it clear Primary Class 1 National Insurance contributions paid by employees do not benefit from tax relief; and
  • Question 9 (‘What if your employees work at the premises of a customer which is in a Freeport special tax site?’) has been updated to clarify when relief is available for individuals working at a customer’s or deemed employer’s business premises.

For Bookkeepers

ICB recommends all GfCs are read alongside HMRC’s other published guidance.  Helpfully, the GfCs direct you to this so you can make informed decisions, based on your personal circumstances.

Freeports are not just about savings to employer National Insurance Contributions, though all of the updates do relate to this.

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