Following the announcement in last June's budget of 'National Insurance (NI) holidays' for new businesses, HM Revenue and Customs have now published a Technical Note detailing the conditions of the scheme.
In order for the NI holiday to apply, the new business has to have been started after 22 June 2010 (Budget Day) and by 5 September 2013. Certain types of employment (e.g. nannies) do not qualify, nor do businesses which are in Greater London and the South East (see the Technical Note for precise details).
The NI holiday does not apply to employee contributions, but only to the employer’s contributions. It lasts for each employee for one year from the day on which they are first employed. The maximum NI that can be avoided is capped at £5,000 per employee.