HMRC Announce Details of 'NI Holidays'

HMRC Announce Details of 'NI Holidays'

Date online: 21/05/2011

Following the announcement in last June's budget of 'National Insurance (NI) holidays' for new businesses, HM Revenue and Customs have now published a Technical Note detailing the conditions of the scheme.

In order for the NI holiday to apply, the new business has to have been started after 22 June 2010 (Budget Day) and by 5 September 2013. Certain types of employment (e.g. nannies) do not qualify, nor do businesses which are in Greater London and the South East (see the Technical Note for precise details).

The NI holiday does not apply to employee contributions, but only to the employer’s contributions. It lasts for each employee for one year from the day on which they are first employed. The maximum NI that can be avoided is capped at £5,000 per employee.

If you have any issues regarding employing staff & would like further information or assistance then please contact us here at Molesworths Solicitors.

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.

Molesworths Bright Clegg is a firm of solicitors established in the United Kingdom and is registered with theSolicitors Regulation Authority.

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