The Government already provide direct financial support to employers of reservists. Firstly, the military pays reservist employees while they are mobilised. Secondly, employers can claim financial assistance to cover additional salary or one-off costs incurred due to the absence of the reservist. An example of this would be any overtime costs if other employees were used to cover the work of the reservist.
There are plans to go even further to support reservist employers. As set out in the Reserves White Paper of July 2013, the Government have committed to introducing legislation to allow the Secretary of State to make payments to SME employers of reservists. This is in recognition of the fact that the impact of absence is greater for these employers.
Tax and national insurance contributions policies are the responsibility of the Chancellor and any such decisions would be set out at future fiscal events.