National Insurance Contributions (NICs) has launched a holiday scheme to encourage new businesses in key UK regions.
The three-year Regional Employer NICs Holiday for New Businesses scheme offers reductions in employer NICs for start-ups in parts of the UK most reliant on the public sector.
Businesses set up on or after 22 June, 2010, will be able to take a 'holiday' for each of the first 10 employees they hire in their first year of business. Each holiday will last for the first 52 weeks the employee is working, so long as these weeks fall within the three-year holiday period.
Employer NICs savings could be as much as £50,000, which is £5,000 per employee, up to a maximum of 10 new employees.
Areas to benefit are the North East, Yorkshire & the Humber, the North West, the East Midlands, the West Midlands, the South West, Scotland, Wales, and Northern Ireland.
Launching the scheme, Exchequer Secretary to the Treasury, David Gauke, said: "The NICs holiday for new businesses, in addition to cuts in corporation tax, will help provide a valuable boost to start-up businesses, and help foster private sector-led recovery that will drive growth in the UK over the coming years."
The scheme ends 5 September, 2013.
For more information about the scheme, visit www.businesslink.gov.uk/nicsholiday.