From 6 September 2010 new business set up outside London, the South East and East of England will be eligible for a holiday worth up to £5,000 for each of the first ten employees they hire in their first year of business (that is up to £50,000 in total).

The Holiday operates by allowing a deduction against the amount of Class 1 NICs that an employer is required to pay to HMRC each month or each quarter. With two main modifications, new businesses that were started between 22 June 2010 (the date of the Chancellor’s Emergency Budget) and the 5 September 2010 will benefit to the same extent as a new businesses started on or after 6 September 2010 provided they satisfy the eligibility tests. 

  • We are creating a new tax guide to summarise the measures for you but in the meantime, you can go to www.businesslink.gov.uk/nicsholiday amd also HMRC's
  • a technical note on the National Insurance Holiday http://www.hmrc.gov.uk/budget2010/nics-hol-new-bus-tn.pdf