Last Chance To Get Your NIC Holiday!

HMRC’s NIC holiday for new businesses comes to an end on the 5th of September 2013.

The NICs holiday is available to new businesses that started up during the period from 22nd June 2010 to 5th September 2013. The NIC holiday allows businesses to withhold National Insurance Contributions of up to £5,000 per qualifying employee. If you have employees who qualified under the holiday scheme you can still inform HMRC of your PAYE overpayment with form E92 and E89. This must be done by the 5th of September 2013. You can reduce your PAYE payments to HMRC by the value of the NICs which you overpaid for qualifying employees if accepted onto the scheme.

You can only apply for the NICs holiday if your principal place of business is listed below:

  • Northern Ireland
  • Scotland
  • Wales
  • East Midlands
  • North East
  • North West
  • South West
  • West Midlands
  • Yorkshire and Humber

According to the HMRC website the types of business that may be able to apply for the holiday are:

  • a sole trader, company or partnership that begins to carry on a trade, profession or vocation
  • a property business or investment business
  • a new trading charity whether or not it is carrying out activities with a view to profit

Your business will only be considered for the holiday if it is considered to be new. If your business has changed ownership or was formerly part of another business it may fall into one of the excluded categories.

Check whether your business is considered to be new

The limits to NICs Holiday are:

  • Limit of £5,000 withheld per qualifying employee.
  • NICs holiday only applies to a maximum of 10 employees.
  • The 10 employees must be hired within maximum of 12 months from the date your business started trading or hired its first employee – whichever period is shorter, and 5 September 2013 when the scheme ends.
  • Holiday period for each qualifying employee is a maximum of 12 months after they entered your employment. All holidays end on 5th September 2013 even if the employee has been in your employment for less than the 12 months.
  • The scheme ends on the 5th September 2013, no amount due after that date can qualify to be withheld.

Link to apply online :

http://www.hmrc.gov.uk/payerti/getting-started/nics-holiday/how-to-apply.htm

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