Overview

Draft legislation giving new businesses a ‘National Insurance holiday’ to help certain ‘new businesses’ who are also employers and who start up outside Greater London, the South East and the Eastern regions of the UK has recently been published. Shoosmiths sums up the main points to note.

The main points to note are:

· It will last from the date of the Emergency Budget on 22 June 2010 until 5 September 2013. The Holiday will target help on certain ‘new businesses’ who are also employers and who start up outside Greater London, the South East and the Eastern regions of the UK

· New businesses will be able to make National Insurance Contributions (NICs) savings under the Holiday from earnings paid to employees on or after 6 September 2010. The holiday will operate 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.