National Insurance Contributions Holiday Scheme Launched
The national insurance contributions holiday scheme is launched by HM Revenue & Customs for the benefit of new business houses. This scheme was started to give some relief to the new business setups which were still in their gestation periods. With the aid of this scheme new businesses will be able to save approximately 50, 000 pounds which is quite a substantial saving.
NIC Holiday Scheme was announced in the emergency budget. It is a three-year scheme which enables new business setups to obtain insurance holiday for the first ten employees they hire during the first year of their business. The exemption is given for a period of 52 weeks provided the employee remains on the payroll during the specified time frame. The enterprises which depend heavily on the public sector would be immensely benefitted by this scheme.
All the business ventures which have been started on and after June 22, 2010 will be eligible for this NIC holiday scheme. They will be able to enjoy the scheme for a three-year term which comes to an end on September 05, 2013. The countries and regions which will take advantage of this scheme are North West, Scotland, Wales, North East, Yorkshire, West Midlands, and Northern Islands.
David Gauke, the Exchequer secretary to the Treasury stated that this scheme was launched with an intention of rebalancing the economy which had become too dependent on employment given by the public sector and government expenditure. He also stated that it would help to boost the private sector and foster life in new businesses thus promoting economic growth and prosperity of UK.
To find out more about the scheme and the eligibility criteria the interested entrepreneurs can visit the official website. After reading the guidelines they can place their applications.