New Businesses can save up to £50,000 in NICs

Date: November 18, 2011 Author: Claire Thomson Category: General Articles Payroll Articles

Employer National Insurance Holiday for New Businesses – Save up to £50,000 in NIC!

The National Insurance Holiday scheme is for new businesses which start up between 22nd June 2010 and 5th September 2013, who are based in certain regions of the U.K. (Not London, South East or Eastern England).  It means that you don’t have to pay up to £5000 of employer’s National Insurance for each of the first 10 employees you take on within 12 months of starting the business, meaning a maximum saving of £50,000.

Types of business that can apply:

The types of business that may be able to apply for the holiday are:

    a sole trader, company or partnership that begins to carry on a trade, profession or vocation
    a property business or investment business
    a new trading charity whether or not it is carrying out activities with a view to profit

Managed Service Companies do not qualify for the holiday.

If you are, or become a client of SME Payroll Services, we will help you with the administration of the scheme and keep the necessary records for you as part of your payroll service.

For more information and details on how to apply, visit HMRC's website [click here].