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Charlton Baker

NIC Holiday for New Businesses

January

2012

NIC Holiday for New Businesses

The Regional Employer National Insurance contributions (NICs) holiday is available to new businesses for a limited period and subject to meeting certain conditions. New businesses may be able to qualify for a reduction of up to £5,000 of the employer NICs that would normally be due - for each of the first ten employees they take on. This means a potential aid to business of up to £50,000.

Who Can Apply?

Before applying for the National Insurance contributions (NICs) holiday, you must already have registered as an employer with HM Revenue & Customs (HMRC). Once you have registered with them, HMRC will send you unique PAYE and Accounts Office references that you'll need to quote on the application form.

The types of business that may be able to apply for the holiday are:

a sole trader, company or partnership that begins to carry on a trade, profession or vocation
a property business or investment business
a new trading charity whether or not it is carrying out activities with a view to profit

Managed Service Companies do not qualify for the holiday.

Where an employer within the intermediaries legislation, commonly referred to as IR35, meets the holiday qualifying criteria, they will be eligible for the holiday on the salary or wage payments they make. They will not be eligible for the holiday on income deemed to be earnings or employment resulting from the IR35 rules.

If you beleive that your business is eligible for this scheme then you can apply to HMRC using this link or if you're unsure do not hesitate to contact us for further assitance.