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.
Under this scheme, for a limited period and subject to meeting certain conditions, new businesses may qualify 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 is available to new businesses that start up during the period from 22 June 2010 to 5 September 2013.
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 have recently started a new business its well worth finding out if it will qualify.