Start-ups urged to take payment holiday

TREASURY minister David Gauke was in Preston yesterday urging businesses from across the region to take up a tax break aimed at helping new firms employ more staff.

Take-up of a government initiative offering Employer National Insurance Contributions (NICs) holidays for new business has been low so far, with only 1,094 businesses from around the region bothering to apply for the discount.

The government said that businesses which had taken advantage had gained from average savings of around £2,000 each last year.

It 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 also apply for a refund of NICs they have already paid.

Mr Gauke visited JNT Joinery in Preston, which is one of the firms that has taken advantage of the NIC holiday and saved over £15,000.  

He said: “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, a 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.