National insurance holidays for new businesses - 03-11-2011National insurance holidays for new businesses
Take-up of the scheme has been less than expected and HMRC are currently in the process of writing to approximately 144,000 businesses reminding them about the benefits of the scheme. The scheme operates by allowing a deduction against the amount of Class 1 NICs that a qualifying employer is required to pay to HMRC each month or each quarter. The scheme, that was officially introduced on 6 September 2010, runs from the original date of the announcement on 22 June 2010 until 5 September 2013. The holiday will apply to all relevant earnings paid to a qualifying employee during the first year of an employee’s employment or for the time left until the holiday scheme ends on 5 September 2013. A qualifying business is entitled to an exemption for up to a maximum of £5,000 of Class 1 employer NIC for each of the first ten qualifying employees. | News: March 2012 Budget SummaryGeorge Osborne continued his fiscal campaigning by attempting to juggle tax take, Government borrowing and economic growth. Only time will tell... Email updatesEnter your email address for the latest information from dbparish. Login |
The National Insurance holiday scheme is designed to help new businesses, in qualifying regional areas, to create jobs by reducing the costs of employing staff. The scheme is only open to qualifying new businesses outside London and the South East.