TaxCorporate TaxNI holiday scheme slammed by Labour

NI holiday scheme slammed by Labour

Admin costs are double the money saved by businesses, says Opposition

NI holiday scheme slammed by Labour

THE GOVERNMENT’S National Insurance holiday scheme has cost twice as much in administration fees as it has saved new businesses, Labour has claimed.

As reported by Accountancy Age, only 10,000 businesses have taken up the scheme in its first year, which offers a tax break for the first staff hired by new companies. This is way below the 132,000 a year figure originally estimated by the Treasury and the 400,000 companies expected to benefit in the three years the scheme is due to run.

Labour has claimed that the Treasury’s own figures show that the administration costs of the scheme so far were £12m, double the £6m saved by businesses.

Shadow Treasury minister Owen Smith said: “The one flagship policy that could have made a difference has been a total flop, supporting just one in forty businesses who were promised help.
And shockingly, the government is set to spend twice as much on admin costs than it has so far paid out in support to businesses.”

The Treasury said: “Over 10,000 businesses have already been helped by the scheme, with these employers benefiting by an estimated £6m. But more businesses could benefit and HMRC has been working to increase this number.”

Related Articles

‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

2m Emma Smith, Managing Editor
OTS report: Corporation tax should follow accounts

Corporate Tax OTS report: Corporation tax should follow accounts

4m Alia Shoaib, Reporter
HMRC tax evasion assistance requests double in five years

Corporate Tax HMRC tax evasion assistance requests double in five years

4m Emma Smith, Managing Editor
HMRC nets £2.6bn in corporate tax from big businesses

Corporate Tax HMRC nets £2.6bn in corporate tax from big businesses

10m Accountancy Age editorial
Tax crackdown brings in £468m for HMRC

Corporate Tax Tax crackdown brings in £468m for HMRC

10m Accountancy Age editorial
Q&A with the Financial Secretary to the Treasury

Corporate Tax Q&A with the Financial Secretary to the Treasury

5m Emma Smith, Managing Editor
Spring Budget 2017: Making Tax Digital

Business Regulation Spring Budget 2017: Making Tax Digital

8m Shereen Ali, Deputy Editor
Tax fraud loses HMRC £16bn

Corporate Tax Tax fraud loses HMRC £16bn

9m Emma Smith, Managing Editor