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The £50,000 jackpot

23 November 2010 / Peter Arrowsmith
Issue: 4282 / Categories: Comment & Analysis , Employees , Income Tax
PETER ARROWSMITH extols the virtues of the National Insurance contributions holiday and other contents of the NIC Bill

KEY POINTS

  • The NIC holiday but also increased NIC rates.
  • The holiday is for the first ten employees for 12 months.
  • Which businesses qualify and which don’t?
  • A worked example of the holiday in practice.
  • Sources of additional information.

The National Insurance Contributions (NICs) Bill 2010 was introduced into the Commons on 14 October 2010. Unusually for such a Bill it did not make its first appearance into the world in the House of Lords. Perhaps the new government is making its mark.

Part 2 of the Bill (clauses 4 to 11) introduces the NIC ‘holiday scheme' with retrospective effect from 6 September 2010 in respect of businesses that commenced on and after 22 June 2010. It is with this subject that this article is mainly concerned.

The Bill also...

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