If you are a new business have you taken advantage of the NIC Holiday Scheme?

Truemanbrown · #1 (**permalink**) 30-12-11, 11:10 AM

If you started in business after 23rd June 2010 and, are not based in certain excluded regions of the UK, then you can apply to join the NIC Holiday Scheme. You may be able to make savings of around £50,000 in your NIC liabilities?

sjr4x4 · #2 (**permalink**) 03-01-12, 10:10 AM

What I don't understand about this (and correct me if I'm wrong), it's just a deferment, not actually letting you off the hook of your NIC bill.

If you can't afford your NIC now, and postpone them for 12 months, aren't you just simply creating an even bigger problem? In 12 months, you will have 2 years worth of NIC's to pay, so unless you plan on doubling your revenue, what does this actually achieve other than a stay of execution?

Or is it just a fiddle for the govt to try and get new businesses to employ people who really can't afford it, and try and force them to grow too quickly?

Or have I missed the point completely?

Truemanbrown · #3 (**permalink**) 03-01-12, 10:49 AM

Quote:

Originally Posted by sjr4x4

What I don't understand about this (and correct me if I'm wrong), it's just a deferment, not actually letting you off the hook of your NIC bill.

If you can't afford your NIC now, and postpone them for 12 months, aren't you just simply creating an even bigger problem? In 12 months, you will have 2 years worth of NIC's to pay, so unless you plan on doubling your revenue, what does this actually achieve other than a stay of execution?

Or is it just a fiddle for the govt to try and get new businesses to employ people who really can't afford it, and try and force them to grow too quickly?

Or have I missed the point completely?

No, it is not a DEFERMENT it is a form of State Aid. So if you receive some other form of aid, then this will reduce the benefit you get from the Holiday Scheme.

sjr4x4 · #4 (**permalink**) 03-01-12, 10:52 AM

Quote:

Originally Posted by Truemanbrown

No, it is not a DEFERMENT it is a form of State Aid.

Ahhh fair enough, in that case, that puts a more positive spin on it

So you've got 12 months to get your new employee's generating lots of nice revenue before getting hit with NIC's.

Truemanbrown · #5 (**permalink**) 03-01-12, 10:58 AM

Quote:

Originally Posted by sjr4x4

So you've got 12 months to get your new employee's generating lots of nice revenue before getting hit with NIC's.

If you qualify, then yes. Obviously, if you qualified any time after 23rd June 2010 there is nothing stopping you going back and making a claim from that point on.

Accounting Help · #6 (**permalink**) 04-01-12, 04:11 PM

Labour says that incentive has been a flop

BBC News - Tax break plan a flop, says Labour

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