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Contact Us Professional News - January 2012
New businesses urged to take advantage of NIC holiday
Following criticism of a scheme that enables new start-up businesses to take advantage of National Insurance contribution holidays, Moore Thompson reminds firms in the East Midlands to make the most of this opportunity.
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.
Most new trading and non-trading businesses which started on or after 22nd June 2010 can claim up to £5,000 for each of the first ten jobs created during their first year.
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
However, start ups within the agricultural, fishing and coal sectors and managed service companies are not eligible.
The tax break lasts until 5th September 2013, so individuals planning to set up a business before this date can take advantage of it. Claims can also be backdated if the company was set up on or after the starting date.
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.
Therefore, any new start-up that may be eligible should contact us for more information.
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