The NIC Holiday for New Businesses, announced in the Emergency Budget, will apply to eligible businesses across Northern Ireland.
HMRC have published draft legislation and guidelines, noting that the benefits of the “holiday” will come into effect on 6 September next. According to their notes, it will last from the date of the Emergency Budget on 22 June 2010 until 5 September 2013. New businesses will be able to make National Insurance contributions (NICs) savings under the Holiday from earnings paid to employees on or after 6 September 2010. The Holiday will operate by allowing a deduction against the amount of Class 1 NICs that an employer is required to pay to HMRC each month or each quarter.
For the first ten qualifying employees that a new business employs in its first year of business, following start up, it will be entitled to an individual Holiday for each of those employees. The Holiday period for each employee will last for the shorter of the employee’s first year of employment or the time left until the Holiday scheme ends on 5 September 2013.
New businesses wishing to enjoy a Holiday will need to make an application to HMRC when they engage their first employee.
Fuller details are available here.