National Insurance Holiday for new businesses

This three-year scheme will be available to a qualifying new business which is set up on or after 22 June 2010.  Unfortunately, the scheme only applies to businesses outside London, the South East and the East of England.

The scheme will provide exemption from Class 1 employers national insurance contributions up to a maximum of £5,000 for each of the first 10 employees taken on in the first year of business.

Most business activities will be eligible as will most staff although there will be some specific exclusions including companies caught by the IR35 rules and managed service companies.