September 08, 2010
Up to 400,000 new businesses could be eligible for tax reductions following the commencement of a government-led scheme.
Firms established outside of London, the South East and East of England will be eligible for up to £5,000 in staff National Insurance Contributions (NICs) for the first ten employees hired during their opening year of trading.
The ‘Regional Employer NICs Holiday for New Businesses’ will offer substantial reductions in employer NICs for new businesses in those parts of the UK most reliant on public sector employment.
The scheme, unveiled by the government during the June budget, could affect 400,000 new businesses - potentially cutting their national insurance payments by up to £50,000 each.
"We need to rebalance our economy which has become over-reliant on public spending and jobs provided by the public sector," said Exchequer Secretary to the Treasury David Gauke.
"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."
Running over the next three years, the scheme has been designed to boost job creation amidst an unemployment epidemic currently plaguing the British economy.
Those who feel their start-up business qualifies for the holiday should contact the HMRC as soon as possible and benefit from the changes.
