The Government are determined that all parts of the UK benefit from sustainable economic growth, and that the private sector recovery is particularly strong in areas that are currently overly dependent on the public sector.
To help deliver this on 22 June 2010, the Chancellor announced the launch of a regional employer national insurance contributions holiday for new businesses (the holiday). The holiday comes into operation today, and will last until 5 September 2013. The holiday reduces employment costs for qualifying new businesses set up from 22 June 2010 outside Greater London, the South East and East of England. In doing so, it will directly provide an incentive to encourage enterprise and business growth.
On 27 August, Her Majesty’s Revenue and Customs published a technical note that included an overview of the scheme, draft clauses and draft explanatory notes. This was in order to provide as much certainty and clarity as possible to employers in qualifying businesses so that they are able to take advantage of the holiday from today.
Copies of the technical note have been placed in the Libraries of both Houses, the Vote Office and is also available on the HMRC website: http://www.hmrc.gov.uk/news/august.htm.
The draft clauses will be included in the forthcoming National Insurance Contributions Bill that will be introduced in the autumn.