A new National Insurance Contributions (NICs) holiday scheme to encourage new business start-ups in key regions was launched yesterday.
The ‘Regional Employer NICs Holiday for New Businesses’ offers substantial reductions in employer NICs for new businesses in those parts of the UK most reliant on public sector employment.
Every year, there are around 22,330 new businesses start-up in the south west, including 2,120 in Cornwall and Isles of Scilly.
Under the three-year scheme, eligible businesses will be able to take a ‘holiday’ for each of the first ten employees they hire in their first year of business. Each holiday will last for the first 52 weeks the employee is in post (providing these weeks fall within the three-year holiday period).
New businesses who take advantage of the scheme will be able to save up to £50k in employer NICs – £5k per employee, up to a maximum of 10 new employees.
The scheme is open to new businesses set up on or after 22 June 2010, and will run until 5 September 2013.
Click here for more information and eligibility details.