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National Insurance Contributions

Treasury written question – answered on 20th July 2011.

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Photo of David Hanson David Hanson Shadow Minister (Treasury)

To ask the Chancellor of the Exchequer

(1) whether he has any plans to review the availability of the national insurance holiday scheme to regions not currently within the scheme;

(2) pursuant to the answer of 29 June 2011, Official Report, columns 817-18, on national insurance contributions, what steps he is taking to increase take-up of the national insurance holiday scheme.

Photo of David Gauke David Gauke The Exchequer Secretary

holding answer 18 July 2011

The information is as follows:

(1) The Government have considered the case for extending the NICs holiday to regions not currently within the scheme. We believe, however, that the best use of public funds is to target the NICs holiday at supporting new businesses in their first year, reducing the cost of hiring staff and improving the likelihood of business survival.

(2) From the date of the announcement by the Chancellor of the Exchequer, my right hon. Friend Mr Osborne, new employers calling HMRC’s new employer helpline have heard a recorded message about the holiday. From 6 September 2010, all new employers registering for a PAYE scheme with HMRC have received a flyer promoting the scheme, directing them to the Business Link site which has promoted the holiday and provided guidance in support of the application process from the outset. This guidance was updated in May 2011 to widen the scope of those entitled to apply for the holiday to include authorised agents.

In addition, HMRC has been working with employer representatives to raise the profile of the scheme and is exploring further opportunities to promote it wherever possible.

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