Posted by Tax Innovations on 19 Oct 2011
What is the Employer National Insurance Holiday?
The Employer National Insurance Holiday is the entitlement to a reduction in NIC’s, dependent on meeting certain qualifying criteria.
The scheme is voluntary and should the business qualify the employer can apply for an employer’s NIC exemption for the first ten employees it employs in the first year of business, up to a total of £5,000 per employee.
Can I apply for the Employer National Insurance Holiday?
The criteria for applying for the scheme is based on the age of the business, the type of business and the business location. This is set out as follows:
Age of Business – The business must have started up within (and including) the dates 22nd June 2010 through to 5th September 2013.
Type of Business – The types of business that may apply for NIC exemption are:
- Property or Investment businesses.
- New trading charities, regardless of whether their activities are with a view to profit.
- Most Sole traders, companies and partnerships.
Location of Business – The business must be located at start up in one of the following countries and regions:
- Northern Ireland.
- East Midlands.
- North East.
- North West.
- South West.
- West Midlands.
- Yorkshire and Humber.
Can I Backdate my Claim for the Employer National Insurance Holiday?
If you have made payments in the past that you believe could have been deducted under this scheme, it is possible to backdate a claim so long as you meet the criteria.
However, the claim process for current or backdated claims can be somewhat burdensome and may very well create an additional end of year paperwork and so it is well worth consulting with a professional adviser before going ahead with any claim.
Contact Tax Innovations about your Employer National Insurance Holiday
If you would like to discuss the employer national insurance holiday, please do not hesitate to contact us.
- Tax Relief For Residential Mortgages
- Non-Resident Landlords – UK Tax Update
- Top 10 Expat Tax Tips for Individuals Moving to the UK
- UK tax residents – beware of US LLCs!
- UK Property Sales: Capital Gains Tax for Non-Residents