FPB: NI holiday is not enough

07/09/2010

While the Forum of Private Business (FPB) welcomes the national insurance (NI) holiday for some start-ups, it does not feel it goes far enough.

Under the scheme, new firms in the north-east, Yorkshire, the Humber, the north-west, East and West Midlands, the south-west, Scotland, Wales and Northern Ireland, will be eligible for the NI holiday.

This means they will not have to pay NI contributions for each of the first ten employees they hire during their first year of operation.

Forum chief executive Phil Orford said: "For years small business taxation has steadily increased, so this reduction in NI for some firms has to be welcomed.

"However, if the government is serious about creating conditions for real economic recovery based on strong small business growth, it needs to introduce even bolder tax policies."

The scheme is open to new businesses which were set up on or after June 22nd this year. It will run until September 5th 2013.

FPB membership provides small firms with comprehensive tailored business solutions, as well as guidance and support.

Posted by Tom Barnett