Official statistics have revealed that only 1,500 businesses have signed up for the National Insurance Holiday scheme which was announced in the Budget in June 2010. The scheme allows businesses to claim exemption from paying National Insurance Contributions on behalf of the first ten employees employed during the first year. A full year of NIC payments are allowed as long as the year falls within the eligibility dates of September 2010 to September 2013.

The latest figures from the British Bankers’ Association show that in excess of 250,000 new business bank accounts were opened between July and November 2010, whilst only 1,500 businesses signed for the NIC Holiday. One reason why companies aren’t registering for the scheme is their location. Businesses which are located in London, the South East and East of England are among the areas which are excluded from the scheme. Another explanation is thought to be a lack of publicity by the government. Many businesses are initially run from home for longer than a year, before considering employment of staff. By the time they are ready to take on employees, they won’t be eligible for the scheme.

Businesses can ensure that they are made aware of all government incentives or schemes offering tax breaks, by registering with a small business accountants who will provide details of all possibilities. It is often difficult to be aware of all options available to a business, which is why the outsourcing of payroll, accounts and tax return to an online accountants can prove to be a valuable investment.

Want to learn more?

Subscribe to our newsletter to get accounting tips like this right to your inbox