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HMRC internal manual

Compliance Operational Guidance

From
HM Revenue & Customs
Updated
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Supporting Guidance: employer compliance: guidance by subject: commencing the compliance check: NIC holiday

Regional employer NIC holiday for new businesses

On 22 June 2010 the Chancellor of the Exchequer announced details of a scheme to help new businesses in targeted areas of the United Kingdom where reliance on the public sector is greatest. During a three year period, new businesses which start up in these areas will get a substantial reduction in their employer (secondary) National Insurance contributions (NICs). This is a temporary measure and will last for three years only. The scheme started on 6 September 2010 and will end on 5 September 2013. The 5 September 2013 cut off is absolute and no employers can receive the benefit of the Holiday on earnings paid after 5 September 2013.

The included countries and regions

A new business is entitled to the Holiday if the principal place at which their business is carried on in the United Kingdom is:

  • Scotland
  • Wales
  • Northern Ireland
  • North East
  • Yorkshire and the Humber
  • North West
  • East Midlands
  • West Midlands
  • South West

Deducting the holiday from monthly or quarterly payments

Eligible new businesses are entitled to deduct the appropriate amount under the Holiday from the Class 1 NIC payments they are required to make to HMRC on either a monthly or quarterly basis. The Holiday deduction is equal to the employer’s Class 1 NICs due for the eligible employees or directors, subject to the £5,000 cap per employee or director.

New businesses set up between 22 June 2010 and 5 September 2010 are able to enjoy the holiday from 6 September 2010, but are required to pay and account for any Class 1 employer (secondary) NICs that may be due on earnings paid in the period leading up to the start of the Holiday scheme on 6 September 2010.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Where you find a claim for Regional Employer NIC holiday you should

  • check that the

    • employer has notified HMRC his intention to operate the scheme. This will be noted on EBS. (This content has been withheld because of exemptions in the Freedom of Information Act 2000)  
    • (This content has been withheld because of exemptions in the Freedom of Information Act 2000) BGN069/10(This content has been withheld because of exemptions in the Freedom of Information Act 2000)
    • amount deducted from PAYE/NIC remittances is correct.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
  • (This content has been withheld because of exemptions in the Freedom of Information Act 2000)