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Details of national insurance ‘holiday’ unveiled

 

Details of a new regional national insurance holiday for start-up businesses have been published by HM Revenue and Customs (HMRC).

 

Under the scheme, new businesses in targeted areas of the UK will not have to pay the first £5,000 of Class 1 employer NICs due in the first year of employment.

 

First announced by George Osborne in the Emergency Budget, the holiday will apply for each of the first 10 employees hired in the first year of business.

 

Businesses that have set up since 22 June (the date of the Emergency Budget) will be able to claim for the scheme for 12 months from 6 September 2010 until it ends on 5 September 2013.

 

However, start-up firms in Greater London, the South East and Eastern region of the UK will not be eligible for the tax break.

 

The Government said it hopes the move will boost enterprise in those areas most dependent on public sector employment and support the ‘transition to a new, sustainable model of economic growth’.

 

For more information on the national insurance holiday, click here.