NI holiday for small businesses launched

The government is providing a boost to small businesses by launching a National Insurance holiday for start-up companies.

Under the new initiative, companies will take a break from paying the tax for the first ten employees they take on within their first year of operation.

The scheme is aimed at UK regions that are heavily reliant in public sector employment, which has been affected by government spending cuts.

Tax holidays will be available to businesses that started trading on or after June 22nd this year. It will run until September 5th 2013.

"We need to rebalance our economy, which has become over reliant on public spending and jobs provided by the public sector," explained David Gauke, exchequer secretary to the Treasury.

National Insurance is paid by both employers and employees on their earnings. Employers also pay the tax on certain benefits-in-kind offered to their staff.

Contributions are used by the government to provide certain social security benefits, such as the state pension and jobseekers allowance.

Posted by Christopher Evans

Published on: September 7, 2010

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