National Insurance break for businesses

BORDERS MP Michael Moore is urging new businesses in the region to take advantage of the Government’s National Insurance Contributions (NIC) holiday and make thousands of pounds of savings.

The NIC holiday will run until September 5, 2013 and is available to all eligible new businesses based outside the south east and east of England which started up on or after June 22, 2010.

Under the three year scheme, new businesses can take a holiday from paying NICs for each of the first 10 employees they hire in their first year of operation. Each holiday will last for the first 52 weeks the employee is in post, providing these weeks fall within the three year holiday period.

New businesses taking advantage of the scheme will be able to save up to a maximum of £50,000 in employer NICs – a maximum of £5,000 per employee for up to 10 employees.

Mr Moore said: “I know that many new businesses in the Borders are facing serious challenges as a result of the economic crisis and the high costs of setting up and running a business.

“This NIC holiday is one of several measures which the UK Government has introduced to boost businesses as they start out. This move will reduce the cost to businesses of employing the first 10 members of staff, potentially saving up to £50,000.

“Here in the Borders, it is vital that we support our new businesses and enable them to provide the job opportunities which local people need.

“I know this scheme will be a significant help to those who have just started out and I want to encourage people to apply for the scheme and benefit from the huge savings it will bring.”