Regional NIC holiday for business start ups

22 June 2010

On Budget Day (22 June 2010) the Government announced that it would be introducing a new scheme to help new businesses in certain targeted regions by providing and exemption from employer's Class 1 National Insurance contributions for a qualifying period.

During a qualifying period that will last three years, new businesses will enjoy an exemption on employer's NIC to a limit of £5,000 per employee for the first ten employees that they take on for the first year of their employment.

The scheme will only be available to new businesses in cotland, Wales, Northern Ireland, the North East, Yorkshire and the Humber, the North West, the East Midlands, the West Midlands and the South West. It will not apply in London and the South East.

New businesses that start on or after 22 June and which meet the qualifying conditions will be able to benefit from the scheme. It is intended that the scheme will start no later than September 2010, however the start date has yet to be confirmed.

Further details of the scheme, including questions and answers, are available on the HMRC website.