TaxCorporate TaxNI holiday scheme hasn’t worked, admits Cameron

NI holiday scheme hasn't worked, admits Cameron

Prime Minister says the scheme was too complicated and poorly targeted

PRIME MINISTER David Cameron has admitted that the National Insurance holiday initiative has not worked.

Only 10,000 businesses have taken up the NI holiday scheme in around 18 months, way below the projected figure of 132,000 a year, as first reported by Accountancy Age. The scheme, which offers a tax break for the first ten staff hired by new companies, was designed to encourage start-up businesses outside of the South East.

But in a speech to an Intuit conference in Maidenhead, Cameron (pictured) said: “The scheme has not worked as well as we hoped. It was too complicated and too targeted at specific businesses. It resulted in around 1,000 jobs but that was not enough.

“You can come up with all the schemes in the world but there’s no scheme that’s as good as controlling spending and keeping taxes down. Just like every business needs to control costs, governments aren’t any different,” he added.

Related Articles

HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

1m Emma Smith, Managing Editor
‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

5m Emma Smith, Managing Editor
OTS report: Corporation tax should follow accounts

Corporate Tax OTS report: Corporation tax should follow accounts

7m Alia Shoaib, Reporter
HMRC tax evasion assistance requests double in five years

Corporate Tax HMRC tax evasion assistance requests double in five years

8m Emma Smith, Managing Editor
Q&A with the Financial Secretary to the Treasury

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

8m Emma Smith, Managing Editor
Spring Budget 2017: Making Tax Digital

Business Regulation Spring Budget 2017: Making Tax Digital

12m Shereen Ali, Deputy Editor
Tax fraud loses HMRC £16bn

Corporate Tax Tax fraud loses HMRC £16bn

1y 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

1y Accountancy Age editorial