National insurance holiday scheme branded 'a failure'
06 Jan 2012
A three-year Government scheme which offers small businesses a tax break for hiring new employees is continuing to show low levels of take-up, with Labour branding the measures a ‘total flop’.
The national insurance ‘holiday’ scheme, which was announced in the 2010 Budget, allows small businesses relief on national insurance payments for each of the first 10 members of staff they hire.
However, only around 10,000 out of a projected 132,000 businesses have so far taken advantage of the scheme, with 12,400 new jobs being created, and the administrative costs currently amount to double the savings made by businesses as a result of the scheme.
The scheme excludes firms in London, the South East, and Eastern England, and Labour is calling for it to be extended to all areas of the UK.
HM Treasury has acknowledged that more businesses could be benefitting from the scheme, and said that HM Revenue & Customs is working to increase the number of businesses taking up the offer.
Please feel free to contact us via our online form