Business News

New Businesses Benefit From NI Holiday

A new regional national insurance (NI) holiday for start-up businesses has come into effect.

Businesses setting up outside London, the South East and East of England will be eligible for a NI holiday worth up to £5,000 for each of 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.

The regional holiday, announced in the June Budget, is designed to encourage the creation of private sector jobs in regions with high public sector employment.

The NI holiday, announced in the June Budget, is available to new businesses starting between 22 June 2010 and 5 September 2013.

However, as the scheme itself did not begin until 6 September 2010, eligible businesses can only deduct employer NICs due on earnings paid on or after that date (but before 5 September 2013).

More details of the scheme are available via Business Link.

LINKS: Business Link website