Time is running out for the Employer’s National Insurance Holiday

Are you aware that new businesses can apply to HMRC for a National Insurance Contributions Holiday? The scheme has been available since June 2010 in certain area’s, including Wales.

Employers will not have to pay the first £5,000 of class 1 employer NICs due in the first 12 months of employment for each new employee; up to a maximum of 10 employees in the first 12 months of business. The scheme allows businesses to save up to £50,000!

Although this does sound fantastic, the scheme ends on 5 September 2013 so you need to act quick, and HMRC will consider a backdated claim if applicable.

Are you eligible?

Type of business – You must be either a sole trade, partnership, company, property/investment business or a trading charity (regardless if there is a view to making a profit)

Business location – The scheme is only available to businesses in certain locations, which includes Wales and the South West.

Business start date – The new business must have started trading on or after 22 June 2010.

Potential issues

Some businesses may not be genuinely ‘new’, for example if you take over an existing business or change from a sole trader to a limited company.

It has to be the first 10 employees of the business, which includes directors, part time or casual staff, family members, employees over state pension age and employees who do not earn enough to trigger NIC deductions etc.

Applying to HMRC

To apply for the scheme visit http://www.hmrc.gov.uk where you can make an online application or download a paper copy of the form.

Alternatively please contact us so we can help you with your application and any other advice you may need.

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