NIC ‘Holiday Scheme’ comes to an end

Back in the summer of 2010, the government launched the ‘National Insurance Holiday Scheme’, providing relief for employers from NI on earnings paid on or after 6 September 2010 and on or before 5 September 2013.

Employers could claim exemption from up to £5,000 of Class 1 employer’s NIC  for each of the first 10 employees hired in the first year of business. The scheme was open to employers setting up new businesses on or after 22 June 2010.

Despite much fanfare at the time, there has been little take up of the scheme and so its closure on 5 September 2013 is unlikely to affect many employers.

Those who set up businesses after 5 September 2012 and claimed NI relief under the NI ‘Holiday Scheme’ should note, however that they will not be entitled to a full year’s relief. HMRC is currently writing to employers and their agents to remind them that the scheme has ended and that no relief is due in respect of payments to employees after 5 September 2013.

To discuss this area further, contact Helen Sewell on [email protected] or call Helen on 01527 558539.

Curo Chartered Accountants

Sep 2013