Announced in the budget there is to be a three-year Employers NI holiday scheme. The scheme itself starts on the 6th September and applies to new businesses starting after 22 June 2010.
It is available to qualifying businesses, exempting new employees from the up to £5,000 of Employers NI for the first 10 employees. HMRC have now issued further guidance in their Technical Note.
Most new businesses commencing after 22 June 2010 and most activities will qualify To be a qualifying business. However, the key qualifying criteria is a geographic one. Excluded areas include
- Greater London
- Parts of Easter England
- Parts of South Easter England
The full list is on page 8 of the technical note.
The guidance note contains extensive commentary on what is
- a new business
- qualifying employees
- qualifying business activities
Businesses will have to apply for teh relief and will need to complete an additional end of year return. We are watching this subject very closely.