Small firms urged to apply for govt scheme

Date: 10th October 2011

The government has urged small businesses around the UK to take advantage of its Regional Employer National Insurance Contributions (NIC) Holiday scheme.

Under the terms of the scheme, eligible enterprises can take a 12-month NIC "holiday" for each of their first ten employees within the first year of operation.

With the holiday saving firms up to £5,000 per worker, the scheme could lead to total savings of up to £50,000.

More than 6,000 businesses have already taken advantage of the deal, but the government is looking to ensure that all eligible firms make use of the scheme.

Stephen Banyard, HMRC director-general, said: "This is a real opportunity for new businesses, so don't miss out.

"If you're thinking of starting a new business or have recently set one up, read the detailed HMRC guidance carefully, to find out if you're eligible. If you are, apply now."

HMRC will write to a further 144,000 firms over the next few weeks in order to publicise the project.

Posted by Jacob Williams