News Release issued by
the COI News Distribution Service on 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 years"
Notes for Editors
1. The Regional Employer NICs Holiday for New Businesses was
announced by the Chancellor at the June 2010 Budget.
2. For more information on the National Insurance Contribution
Holiday from the 6th September you can go to www.businesslink.gov.uk/nicsholiday.
3. Employers will be able to make holiday deductions each time
they are due to make monthly or quarterly payments to HMRC.
4. 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 HMRC guidance.
5. HMRC published a technical note on the National Insurance
Holiday on the 27th August which can be found at http://www.hmrc.gov.uk/budget2010/nics-hol-new-bus-tn.pdf.
6. Businesslink.gov.uk 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.
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