Question: I started my own business in August and I have heard about a new initiative under which I could avoid paying National Insurance. Is this true and if so, how can I benefit?
Jim Andrew runs small business tax and accountancy practice, TaxAssist Accountants, Cregagh Road, Belfast replies: The Government launched a National Insurance Contributions holiday on September 6 for any new business established after June 22 this year. This is good news for anyone who has launched their company recently or are planning to do so. The scheme is a bid to encourage job creation although it hasn’t passed through Parliament yet.
The National Insurance holiday applies to any local business which meets the qualifying criteria and it is worth up to £5,000 for the first 10 employees you hire in your first year. That means a maximum saving of £50,000. Though there is a chance the Bill won’t get approved, it is well worth applying through Business Link on 0845 600 9006.