Treasury Minister, David Gauke, who is visiting Belfast today to discuss rebalancing the Northern Ireland economy, has reminded local businesses 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 213 businesses benefitting in Northern Ireland, but there are likely to be many more eligible.
The 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 their 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, Exchequer Secretary to the Treasury, said:
There are hundreds of new businesses in Northern Ireland that could be missing out on up to £50,000 through the National Insurance holiday. The government is already looking at how we can rebalance the Northern Ireland economy but the NICs holiday, along with the cuts to corporation tax we announced at Budget, can give an instant boost to new businesses. It’s quick and easy to apply for and I’d encourage all new businesses and their advisers to find out more.
The scheme ends on 5 September 2013.
Notes for Editors
1. 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.
2. Employers will be able to make holiday deductions each time they are due to make monthly or quarterly payments of NICs to HMRC.
3. 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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