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1,000 businesses apply for NIC holiday

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The National Insurance Contributions Bill completed its second reading in the House of Commons on 23 November and was committed to a Public Bill Committee, which is scheduled to conclude its consideration of the Bill by 9 December.

People who have ‘relevant expertise and experience’ or a special interest in the Bill have been invited to submit written evidence to the Committee.

The Bill introduces the regional employers’ NIC holiday, which provides a potential saving for of up to £50,000 for new businesses.

Asked how many businesses have applied, David Gauke, the Exchequer Secretary to the Treasury, said: ‘At this early stage, we have had around 1,000 applications, but we expect more as awareness of the policy becomes greater and as businesses contact their professional advisers.’

An HMRC technical note published in August said the Bill was expected to receive Royal Assent in early 2011.

‘Until that time, businesses eligible for the Holiday will, as a result of the exercise of HMRC Commissioners’ collection and management powers, be able to receive the benefit of the Holiday from 6 September 2010,’ it said.

‘New businesses which choose to participate in the scheme in advance of it becoming law should note that if the draft legislation that is published in this Technical Note is not enacted in substantially the same form they will be required to pay over to HMRC by 19 April 2011 any contributions that they have withheld which remain due.’