The regional national insurance contributions holiday for new businesses came into effect on 6 September.
New business set up outside London the South East and East of England will be eligible for a ‘holiday’ worth up to £5 000 for up to the first ten employees they hire in their first year of business the Treasury announced giving a maximum saving of £50 000.
The scheme will run for three years and will benefit an estimated 400 000 new businesses. It will operate by setting a deduction against the amount of Class 1 NICs payable. A technical note is available via www.lexisurl.com/Dn57B and guidance for employers is provided on the Business Link website. See www.lexisurl.com/uNkj4.
Draft clauses will be included in a National Insurance Contributions Bill to be introduced in the autumn.
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