Press Release 7th January 2011
Great tax saving opportunity
A fantastic opportunity has arisen to save tax if you are thinking of starting a new business.
The regional National Insurance Contributions holiday came into effect on 6 September 2010.
New businesses set up in Cornwall are now eligible for a NIC holiday of up to £5,000 for each new employee taken on in the first year of their business. The scheme lasts until to 5 September 2013
‘If the UK is going to avoid the devastating impact of failure to dig itself out of the current economic mess then businesses in our region will need to contribute to creating more demand and more jobs. And that means local entrepreneurs must leave no stone unturned in their drive to innovate and create more wealth’ said Richard Alexander of Alexander & Co. ‘This is an incentive that is almost being handed to entrepreneurs on a plate, and should not be missed. Up to £50,000 could be saved.’
You can claim if your new business started any time after 22 June 2010.
The following conditions apply:
- the holiday applies to the first 10 employees taken on in the first year of the new business
- the holiday period for each employee will last for the first year of his or her employment or a shorter period to 5 September 2013 when the scheme ends
- the maximum saving of NIC contributions for each employee will be limited to £5,000
- the NIC holiday is subject to a formal application to HMRC when you engage your first employee
- there are anti-avoidance provisions to prevent existing businesses from reorganising their affairs to qualify for the relief
- the NIC savings are currently 12.8% of a person’s salary above £5,715 pa. On 6 April next this increases to 13.8%
Readers who think they may be eligible for this new relief and would like our help applying to HMRC and saving tax, or if you would like details of our FREE Business Startup Program, please call Stephanie Stock on 01208 814981.