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angels & demons

The new rules for being eligible for the Employers National Insurance holiday announced in the budget are nearly but still not ready. Thanks to some insider info, I can give you the gist of what's happening.

Good news!

  1. Only new businesses that started trading on or after 22nd June. So this doesn't mean when you registered the company or registered with HMRC.
  2. The National Insurance holiday only applies to the first 10 employees recruited in the first year of business but not after September 2013.
  3. An approved business can claim up to £5000 relief PER EMPLOYEE PER YEAR.




Bad news !


  1. There is a new MANUAL payroll return to be completed at the same time as the present electronic one in order to claim the tax relief.
  2. Employers SHOULD obtain confirmation of eligibility from HMRC to prove that they are eligible for tax relief. But the employer has first to determine if he/she/it is eligible.
  3. The relief applies only to certain areas of the UK - not yet announced
  4. Witholding your NIC contributions only starts from 6th September even if you started up and employed someone on 1st July.
  5. The legal stuff has still to be got through parliament - it could still be bounced
  6. How they will handle this alongside the new PAYE penalty system is anyone's guess.


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