A year-long holiday
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New employers can apply for a one-year holiday from National Insurance contributions, with savings of up to £50,000
Words: Patric Cunnane These are tough times for the haulage industry, and particularly for operators that have just started up. All the more reason then to apply for a government-backed scheme that will save £5,000 per employee in the irst year of an operation’s life.
The Regional Employer National Insurance Contributions (NICs) Holiday scheme is well worth considering, despite its unwieldy name. The savings apply for the irst year of business and are limited to a maximum of £5,000 each for the irst 10 employees, representing a saving of up to £50,000.
New businesses
The scheme is open to new businesses that set up on or after 22 June 2010 in the North-East; Yorkshire and the Humber; North-West; East Midlands; West Midlands; South-West; Scotland; Wales and Northern Ireland. It is run by HM Revenue and Customs (HMRC). So far 6,000 applications have been received; successful applicants can expect a refund of NICs that have already been paid.
The speciic geographical locations have been chosen to encourage the creation of private sector jobs in regions reliant on the public sector.
However, a cynic might argue that the scheme is designed to soften the blow of further public sector cuts. Since last month HMRC says it has written to 144,000 new businesses to encourage them to ind out more. “This is a real opportunity, so don’t miss out,” says HMRC general director Stephen Banyard. “If you’re thinking of starting a new business or have recently set one up, then read the HMRC guidance to ind out if you are eligible.” The scheme runs for three years, although the NICs holiday is available for just one year.
However, applicants have until 2013 to apply. n