Many readers will be aware that as part of the June Budget, the Chancellor announced the set up of a new scheme to help new businesses in targeted areas of the UK which during a three year qualifying period will effectively result in a substantial reduction in their employer National Insurance Contributions.
Within the qualifying period, these employers will not have to pay the first £5,000 of Class 1 employer NICs due in the first twelve months of employment. This will apply for each of the first 10 employees hired in the first year of business and operate in selected countries and regions.
Subject to meeting the necessary legal requirements, the scheme is intended to start no later than September 2010. Any new business set up from 22 June which meets the criteria set out in the forthcoming announcement will benefit from the scheme.
Northern Ireland is included as one of the regions to benefit from the scheme.
HMRC intends to publish a Technical Note containing an overview of the Holiday scheme and the draft legislation as well as detailed guidance for new businesses on its website before the scheme is launched.
In the meantime more information is available on the HMRC website.