NICs holiday scheme for new businesses is launched

A new National Insurance contributions (NICs) scheme to encourage new business start-ups in key UK regions has launched.

The Regional Employer NICs Holiday for New Businesses scheme has been created to offer substantial reductions in employer NICs for new businesses in the parts of the UK most reliant on public sector employment. Under the three-year scheme, eligible businesses will be able to take a 'holiday' for each of the first 10 employees they hire in the first year of business. Each holiday will last for the first 52 weeks the employee is in the post, providing that these weeks fall within the three-year holiday period.

In total, the scheme could represent a saving of up to £50,000 in employer NICs at £5,000 per employee, up to a maximum of 10 new employees. Details: hmrc.gov.uk