The Regional Employer National Insurance Contributions (“NIC”) Holiday offer reduction in Employer NICs for new businesses in services, manufacturing and other key industries who meet certain criteria and in certain geographical locations.
North East businesses that fit the following criteria are eligible for this scheme.
- sole traders, companies or partnerships that begin trading, carrying on a profession or vocation.
- An investment or property business.
- a new trading charity whether or not it is carrying out activities with a view to profit.
Managed Service Companies do not qualify for the holiday.
Where an employer operates within IR35 legislation, meets the holiday qualifying criteria, they may be eligible for the NIC holiday on the salary or wage payments they make. They will not be eligible for the holiday on income deemed to be earnings or employment resulting from the IR35 rules.
Under the scheme, eligible new businesses (started up post 22nd June 2010) can take a 12 month NIC holiday for each of the first 10 employees hired in the first year of business, (between 6th September and 5the September 2013) up to £5,000 per staff member. This gives a potential saving of £50,000.