Your small business can send unnecessary costs packing with an NI holiday
Fancy a break from paying employees’ NI contributions? If your small business meets certain conditions, you could get £50k potential savings through NI holiday scheme.
New businesses can receive up to £50,000 worth of potential savings by exempting them from employers’ NI contributions for each of the first ten workers they employ.
Reports say that only 10,000 firms have signed up when around 400,000 were expected by this stage.
Prime Minister David Cameron is said to be disappointed by the low take-up for the scheme.
Have many small businesses been on the ‘lilo’? One possible explanation is that the recession is putting off businesses from taking on more staff. It could be that the scheme has got buried under all the red tape associated with starting a small business.
The good news is that this scheme is still in place and your small business could benefit.
As with most holidays, there’s a few things to remember. Here’s a brief ‘cook’s tour’.
If your business is UK-based, but outside the south East, including London, you stand a good chance of qualifying.
- your business started on or after 22 June 2010
- it must be your only business
- its based in the UK but not in the South East
- your employee(s) started to work for you for the first time on or after that date
If you can say ‘yes’ to all these, your business may be able to claim an NI holiday for one or more of its workers.
Also, the NI holiday may apply to salaries paid to company directors, shareholders and their relations.
If dealing with your small businesses’ accounts or payroll causes you problems, TI Payroll are able to put your worries to flight. They can offer a free consultation – so it won’t ‘Costa’ lot – whether your small business is just starting or looking to expand. You’d have to travel a fair distance to find a better service.
Contact TI and they’ll help you to relax.