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Still more Good News and Bad news...

bad news truck

 

More good news this week which I know is hard to believe, since its only 4th September already.

 

It concerns the good and bad news I reported recently on this blog

OK, so here's the good news first:

 

  • There are very few restrictions on which parts of the country this applies to, and the "losers" are the "so-called" South East and London and parts of the East of England.

And now the (much more) bad news...

  • This relief is for new businesses only. So existing businesses that you have taken over since 23rd June won't qualify.
  • If you meet all of the other criteria but all of the (10) new employees who are able to qualify the business for the relief, need to be still there after 6th September when the cash advantage of the relief kicks in. Maybe an example will make this easier:

A business starts on 1st July and recruits 7 new employees. Pay and conditions are less than desirable so 5 leave. The business recruits another 5 employees and after a few weeks 1 of the original employees and 3 of the new ones leave. A further recruitment drive, yields a further 7 employees and all before 5th September.

6th September arrives and only 1 employee qualifies the employer to claim the relief.

  • If the bill to change the legislation - which is required for this change to happen - for some reason doesn't succeed - any Employers National Insurance contributions withheld will have to be paid by 19th April 2011.
  • Directors are included in the scheme as are employees who are below the NI threshhold. So even if you have employees earning - say £104 per week, they qualify as one of your ten employees. Many directors are paid "salaries" of £105 which maintains their contribution record but causes them to pay little or no National Insurance. A director in this case immediately uses up one of the employee slots and gains the company no advantage from the relief.
  • Finally, just to cheer you up, if the total state aid the new business gets exceeds the maximums allowed by EU, then those businesses will not qualify for the relief .

Aren't you glad its only 4th September? That means there are 26 possible REALLY good news days to go!

JohnF

 

 

 

 

 

 

 

 

 

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Yarali on April 28, 2012

ara you heard car!n!o im camerayovs phionjeotk e garine payts kides inchou, camera-yen che adi (sorry raffi no offence ;-) ngaroghene gereva inknal phionjeotk e ;-) lak e shou hal tawado2