National insurance holiday for new businesses in the regions begins
Submit Articles Back to Articles
06 September 2010
Today a new regional National Insurance Contributions (NICs) holiday for new
businesses came into effect.
New business set up outside London, the South East and East of England will
be eligible for a holiday worth up to £5,000 for up to the first ten employees
they hire in their first year of business. This means a maximum saving on their
national insurance payments of up to £50,000.
The scheme will run for three years. It is estimated that 400,000 new
businesses will benefit by having a lower tax bill from employing new staff.
New businesses established since the announcement in the Budget on the 22nd
June, and which meet the qualifying criteria, will also be eligible to apply.
The regional NICs holiday, announced in the June Budget, will encourage the
creation of private sector jobs in regions reliant on public sector employment
by reducing the cost to new business of employing staff.
Exchequer Secretary to the Treasury, David Gauke:
“We need to rebalance our economy which has become over reliant on public
spending and jobs provided by the public sector.
“The NICs holiday for new businesses in addition to cuts in corporation tax
will provide a valuable boost to start up businesses and help foster the
private sector led recovery that will drive growth in the UK over the coming
The Regional Employer NICs Holiday for New Businesses was announced by the
Chancellor at the June 2010 Budget.
For more information on the National Insurance Contribution Holiday from the
6th September you can go to the
Business Link website
Employers will be able to make holiday deductions each time they are due to
make monthly or quarterly payments to HMRC.
Most kinds of new business will be eligible for the holiday, providing they
employ staff and meet certain criteria, which are set out in the detailed
Business Link is the official government website for businesses of all
sizes. It provides people with easy access to authoritative information,
transactions and support to help them conduct their dealings with government
and to find the information they need.
About the Author
© Crown Copyright. Material taken from HM-Treasury. Reproduced
under the terms and conditions of the Click-Use Licence.
Follow us @Scopulus_News
Article Published/Sorted/Amended on Scopulus 2010-09-06 15:19:04 in Tax Articles