Neil Hooton Accountancy Services Limited is preparing a series of tax-saving blogs exclusively for the Best of Bolton. The first one concerns the NIC holiday announced in the Summer budget, a new scheme to start in September 2010, which will benefit new businesses in North-West of England including Bolton. New businesses that are set up from 22 June 2010 and meet criteria to be announced at a later date will benefit from a scheme that provides a NICs holiday.
New businesses will not have to pay the first £5,000 of employers’ National Insurance contributions in the employee’s initial twelve month period of employment. Employers will enjoy NIC holidays for their first ten employees during the initial twelve months of employment. The scheme will run for three years, which will encourage business growth during this time.
This scheme doesn’t include anyone within IR35 legislation or anyone who works through a Managed Service Company, which means that businesses will not be encouraged towards hiring anyone who is caught by IR35 rules.
The new proposals came into force in September 2010, although this has yet to be enacted into law. Employers will be encouraged to take on more staff as they will benefit from the NICs holiday, which could save them as much as £50,000 over the three year period.
The proposal will be crucial for contractors and freelancers as the public sector are facing massive cuts, impacting on many jobs. New businesses have many incentives with the NIC holidays scheme and reductions in the corporation tax rates, enabling them to develop their workforce at a time when the country will welcome growth.
If anyone would like any further information on the NIC scheme, please don't hestiaite to contact Neil Hooton on 01204 689607."
Additionally, the following offer is available until 31 January 2011.
1. Free VAT registration for all non-VAT registered businesses including free Should I or Shouldn't I go VAT registered analysis and consultation, saving £150.
2. Free PAYE scheme registration for all companies who are thinking of taking advantage of the Governments NIC holiday , saving £125.
