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New businesses urged to take advantage of NIC holiday
New start-up businesses in the East Midlands should take advantage of National Insurance contribution holidays following criticism of the scheme by Labour, says a leading chartered accountancy firm.
The Treasury has said more firms could be taking advantage of the tax break for new workers, after the opposition claimed the initiative had been a “total flop” with only 10,000 companies signing up to the scheme since it was introduced following the March 2010 Budget.
Lincolnshire-based Moore Thompson say that most new trading and non-trading businesses can claim NI contribution holidays for each of the first ten jobs created during their first year."
Managing Partner Mark Hildred said: “Most new trading and non-trading businesses which started on or after 22nd June 2010 can claim up to £5,000 for each of these ten employees. "
“However, start ups within the agricultural, fishing and coal sectors are not eligible."
“The tax break lasts until 5th September 2013, so even if you are planning to set up a business before this date, you can still take advantage of it."
“When the plan was announced, it was believed up to 400,000 small businesses (SMEs) could benefit from this plan, so it is likely that many SMEs in the East Midlands have not yet claimed this vital tax break."
“You can even back date your claim if your company was set up on or after the starting date."
“I would urge any new start-up that may be eligible for this tax break to contact their accountant now.”
The types of business that may be able to apply for the holiday are:
- a sole trader, company or partnership that begins to carry on a trade, profession or vocation,
- a property business or investment 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.
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