National Insurance changes to take effect
BUSINESS should be ready to take advantage of national insurance contributions holidays that are about to be introduced, according to new advice.
The NIC holiday was introduced as part of changes to the tax system announced in the Emergency Budget earlier this year.
Richard Whitelock, tax consultant at accountants Garbutt & Elliott said: “This holiday is aimed at providing new businesses with a substantial reduction in their employers’ NIC and is targeted at selected areas of the UK, including Yorkshire and the Humber.
“Clearly, there will be scope under the proposed NIC holiday for new businesses to make significant cost savings on employers’ NICs, which will be all the more welcome given the ongoing economic pressures.
Existing business may also be able to take advantage of the opportunities on offer in certain circumstances.
“This is only a proposed scheme at present, with the specific scheme rules yet to be announced. Our advice for all new businesses, and prospective new businesses, is to be aware of this developing opportunity, and to seek professional advice as to how they may ensure that they qualify and maximise the benefits available.”
The NIC holiday will apply to businesses created since the Emergency Budget and some pre-existing businesses that are expanding. Qualifying companies can claim an NIC holiday for the first 10 people it hires in its first year.
