Under the Regional Employers NICs Holiday scheme, new businesses could have qualified for a deduction of up to £5,000 from the employer NICs that would normally be due – for each of the first ten employees they take on.

The National Insurance contributions (NICs) holiday was available to new businesses that started up during the period from 22 June 2010 to 5 September 2013. So it has now ended.

But from April 2014 the good news is that every employer will save up to £2,000.

To take advance of the allowance, firms will simply have to inform HM Revenue & Customs, and the Treasury says it will be “delivered through standard payroll software”.

Up to 450,000 small businesses will no longer pay national insurance contributions from April 2014.

The allowance will cost almost £6bn over five years.

When George Osbourne announced it in the budget he said:

“For the person who’s set up their own business, and is thinking about taking on their first employee – a huge barrier will be removed. They can hire someone on £22,000, or four people on the minimum wage, and pay no jobs tax,”

So we look forward to claiming our £2,000 next year.

 

steve@bicknells.net