National Insurance holidays begin for new businesses

National Insurance Contributions (NICs) holidays have come into effect for new businesses outside London, the South East and East of England.

For the next three years, firms will be eligible for a holiday worth up to £5,000 for the first ten employees they hire in their first year of business.

Announced in the budget earlier this year, the scheme is designed to aid the creation of private sector jobs and it is estimated 400,000 new businesses could benefit.

David Gauke, exchequer secretary to the Treasury, says: "We need to rebalance our economy which has become over reliant on public spending and jobs provided by the public sector.

"The NICs holiday for new businesses in addition to cuts in corporation tax will provide a valuable boost to start up businesses and help foster the private sector led recovery that will drive growth in the UK over the coming years."