Osborne plans NIC break for new companies in deprived areas
Tax break aims to minimise impact of spending cuts in regions heavily dependent on public sector employment
Companies setting up in areas with a high concentration of public sector
workers will be entitled to a NIC holiday in measures to be announced in
tomorrow’s Budget.
The £900m tax break will enable businesses that start up outside of London,
the south-east or the eastern region to avoid paying employer National Insurance
contributions it their first year.
The move is an attempt to minimise the impact of expected cuts in services in
areas where the public sector employs a high proportion of the workforce. It
will also aim to deflect concerns that cutbacks in spending and tax rises could
cause a double-dip recession, reports the
Observer.
Companies can apply for the holiday any time over the next three years of up
to £5,000 per employee or £50,000 per business.