NIC scheme launched to help new businesses
A new National Insurance Contributions (NICs) holiday scheme has been launched to encourage more business start-ups. The scheme could save new employers up to £50,000 in employer NICs, which could help the 22,141 new companies which are set up each year in the West Midlands.
The Regional Employer NICs Holiday for New Businesses scheme offers substantial reductions in employer NICs for new businesses. Under the three-year scheme, eligible businesses will be able to take a ‘holiday’ for each of the first 10 employees they hire in their first year of business. Each holiday will last for the first 52 weeks the employee is in post.
New businesses that take advantage of the scheme will be able to save up to £50,000 in employer NICs - £5,000 per employee - up to a maximum of ten new employees.
According to HM Revenues and Customs, about 22,141 new businesses start up in the East Midlands every year.
The scheme is open to new businesses set up on or after 22 June 2010, and will run until 5 September 2013.
Launching the scheme, exchequer secretary to the Treasury David Gauke, said: “We need to rebalance our economy, which has become over reliant on public spending and jobs provided by the public sector.
“The NICs holiday for new businesses, in addition to cuts in corporation tax, will help 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.”
