To encourage the creation of private sector jobs in regions reliant on public sector employment, the government will shortly announce details of a new scheme to reduce employers’ national insurance contributions (NICs).
During a three-year qualifying period, new businesses which start up in these areas will get a substantial reduction on their employer NICs.
Within the qualifying period, these employers will not have to pay the first £5,000 of Class 1 employer NICs due in the first twelve months of employment.
This will apply for each of the first 10 employees hired in the first year of business that operate in selected countries and regions.
Subject to meeting the necessary legal requirements, the scheme is intended to start no later than September 2010.
Any new business set up from 22 June 2010 which meets the criteria set out in the forthcoming announcement will benefit from the scheme.
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