Treasury Minister, David Gauke is in Preston today reminding new businesses across the North West 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 1,094 businesses in the region that have taken advantage of the scheme, saving 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 Preston’s JNT Joinery, a bespoke joinery business that has taken advantage of the NICs holiday and saved over £15,000. He said:
I’m delighted to be in Preston today to see how JNT Joinery 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 North West that could be missing out on up to £50,000. I’d encourage all new businesses and their advisers to find out more.
Jason Bramwell, Partner at JNT Joinery, said:
When we opened the joinery in July 2010 we found out that we were eligible for the National Insurance holiday. Since signing up, we’ve saved money through the scheme that we were able to put towards building the business.
I’d recommend the scheme to anyone setting up a new business - it was simple to apply for and is helping us save money at a time when every penny counts.
The scheme ends on 5 September 2013.
Notes for Editors
1,094 businesses in the North West had registered for the NICs holiday on 11 August 2011.
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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