Treasury Minister, David Gauke is in Leicester today reminding new businesses across the East Midlands not to miss out on money they could be entitled to through the Regional Employer National Insurance contributions (NICs) holiday for new businesses. There are currently 552 businesses benefitting in the region that saved an average of just over £2,000 each last year, but there are likely to be many more eligible.
The NICs holiday scheme is designed to encourage the creation of private sector jobs in regions reliant on public sector employment by reducing the cost to new business of employing staff. The holiday is available to businesses set up since 22 June 2010 and is worth up to £5,000 for up to the first ten employees hired in the first year of business. This means a maximum saving on national insurance payments of up to £50,000. Eligible new businesses can apply for a refund of NICs that they have already paid.
David Gauke is today visiting Future Cycles, a Leicester bicycle shop and repair workshop that has taken advantage of the NICs holiday and saved over £2,600. He said:
I’m delighted to be in Leicester today to see how Future Cycles has benefited from the National Insurance holiday. This scheme is quick and easy to apply for and can give an instant boost to new businesses, but there are hundreds in the East Midlands that could be missing out on up to £50,000. I’d encourage all new businesses and their advisers to find out more.
Tim Hudson, one of the Directors of Future Cycles, has saved over £2,600 through the NICs holiday scheme. He said:
When we opened our shop last autumn we found out that we were eligible for the National Insurance holiday. Since then we’ve saved so much money through the scheme that it’s covered the cost of taking on our newest mechanic. I’d recommend the scheme to anyone setting up a new business - it was simple to apply for and has helped us save money which we’ve been able to put towards growing our business. Now there are seven of us providing custom-built road bikes, cycle accessories, recycled bikes and low cost repairs to customers from across Leicester and the East Midlands. We also provide training for children at risk of exclusion from school.
The scheme ends on 5 September 2013.
Notes for Editors
Future Cycles is a cycle shop and repair workshop in Leicester. For more information, visit the Future Cycles website (opens in new browser window)
552 businesses in the East Midlands had registered for the NICs holiday on 11 August 2011.
More information about the NICs holiday can be found on the Business Link website.
The Regional Employer NICs Holiday for New Businesses located outside London, the South East and East of England was announced by the Chancellor at the June 2010 Budget.
Employers will be able to make holiday deductions each time they are due to make monthly or quarterly payments of NICs to HMRC.
Most kinds of new business will be eligible for the holiday, providing they employ staff and meet certain criteria, which are set out in the detailed HMRC guidance.
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