Categorized | news

Why are new businesses ignoring the employers NICs holiday?

Why are new businesses ignoring the employers NICs holiday?

Contractor accountancy firm, Mitchell Charlesworth, has said that several new businesses are failing to capitalise on the National Insurance Contributions holiday set up by the government last year.

When Chancellor George Osborne delivered the coalition’s first budget last June, he introduced a measure whereby new businesses were exempt from paying employers NICs, up to a value of £5,000, on the first 10 workers they employ during their first year in business. By taking advantage of this, a new company could save up to £50,000.

The NIC holiday initiative is available to new firms that set up between the 22nd of June 2010 and the 5th of September 2013.

Paul Durrance from Mitchell Charlesworth said that government sources claim the take up of the scheme has been disappointingly low.

The coalition has now launched StartUp Britain in a bid to provide more support for entrepreneurs and whilst this looks good for the government, there’s a bewildering minefield of information for resource stretched start up firms to absorb, he continued. Unless they possess specialist knowledge, these firms could easily miss the golden nuggets, such as the NICs holiday.

The government is disappointed that so few firms have taken up the NIC holiday so start ups should grab the opportunity while it is available. There are certain conditions that have to be met so start-ups may want to consult a financial expert to check their eligibility. Newly set up companies in London, east England and the Southeast are not entitled to the break and in certain sectors there is a limit on the amount that can be claimed.

© 2010 All rights reserved. Reproduction in whole or in part without permission is prohibited.

Image: Emergency ignored: Current status of the Patent Reform Act by opensourceway

Be Sociable, Share!

Leave a Reply

You must be logged in to post a comment.

  • Switch Accountants for FREE

    Switch Accountants for FREEAt K&B Accountancy Group we have introduced a simple and straightforward approach to changing accountants. We’re offering contractors, consultants and freelancers the opportunity to switch to K&B Accountancy Group for FREE without the need to pay for any ‘catch up’ or retrospective accountancy fees for the previous year’s accounts and corporation tax return* *T&Cs apply

our top 5 twitter posts

twitter

contractor accountants

contractoraccts



twitter Join the conversation
Free Telephone Advice