From today, new businesses in some regions of the UK will be able to delay their National Insurance contributions for their first 10 employees.
The scheme, announced by Chancellor George Osborne in June’s Emergency Budget, allows businesses to save up to £50,000 in employer National Insurance – £5,000 per employee.
The scheme is part of government’s push to inspire a private led recovery, as it hopes companies can take up the slack from public sector cuts and job losses. It is running in the regions deemed to be most dependent on the public sector: the North East, Yorkshire and the Humber, the North West, the East Midlands, the West Midlands, the South West, Scotland, Wales and Northern Ireland.
The scheme is open to new businesses set up on or after 22 June 2010, and will run until 5 September 2013.
Exchequer Secretary to the Treasury, David Gauke, said: “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.”
Information on eligibility and how to join the scheme is available at businesslink.gov.uk/nicsholiday