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Example 1 � Employee is not a qualifying employee 

»Ê¹ÚÌåÓýapp employer, who has a business premise in a Freeport special tax site, hires an employee on 1 May 2025 and pays them £3,000 per month gross (£36,000 a year).

»Ê¹ÚÌåÓýapp employee was not employed by the employer or a connected employer in the previous 24 months.

At the start of the employment the employer reasonably expects that the employee will spend 2 days (40% of their working time) at the employer’s business premises in a Freeport special tax site and 3 days (60% of their working time) working from home. »Ê¹ÚÌåÓýapp employee does not meet the 60% rule.

»Ê¹ÚÌåÓýapp employee does not meet the rules for claiming the relief so the employer cannot claim the relief.

»Ê¹ÚÌåÓýapp employer will pay secondary National Insurance contributions as normal without claiming the relief on all earnings above the Secondary Threshold (£417 per month).

Note

This example also applies to an employee working in an Investment Zone special tax site.