"The National Insurance Contributions holiday is the Government's flagship policy to boost employment but it hasn't anywhere reached the levels that were predicted. The weak economy and fragile business confidence caused by the return to recession means that start ups haven't taken on staff as quickly as they might have done had the economy been stronger. "Extending the scheme will involve a financial outlay by Government, but having more people in work will increase tax revenues in the long run as more people are paying tax than receiving help from the state through Job Seekers Allowance, for example. Not just that, but getting people into full time work will mean they have more money to spend increasing revenue from VAT."
REGIONAL EMPLOYER NICs HOLIDAY FOR NEW BUSINESSES
21 March 2013
HMRC have issued an update regarding the end of year process required for Employers who have qualified for NICs Holiday during 2012-13.
The 2012-13 Employer NICs Holiday End of Year Returns (form E92) will shortly be posted to all employers who have successfully applied for the scheme, or to agents where HMRC have received the appropriate instructions to do so. The returns should arrive by 30 April 2013. In circumstances where a return has not been received for a particular client by this date, please contact the Employer Helpline on 08457 143 143. Although HMRC looked at the possibility of introducing an electronic facility for submitting the 2012-13 return, the costs of such a solution coupled with the limited duration of the scheme which ends in September 2013 did not make this a viable option. The Employer NICs Holiday End of Year Return (form E92) and supporting forms E89 (or equivalent) for each qualifying employee should be submitted by all employers who were entitled to withhold Class 1 NICs under this scheme during the 2012-13 tax year, including any employers who operated PAYE in real time. The forms need to be returned in the envelope provided by 19 May 2013. If you do not have sufficient form(s) E89 (and cannot photocopy them) you can record and print employee E89 information using the online interactive NICs holiday recording form which can be accessed from HMRC website. For employers who operated PAYE in real time during the 2012-13 tax year, there is no requirement to submit an Employer Annual Return (P35 & P14s). Instead their final Employer Payment Summary (EPS) for the year needs to reflect the total amount of employer NICs that the employer was entitled to withhold as shown on form E92 and supporting form(s) E89. For all other employers, HMRC recommends that the Employer NICs Holiday End of Year Return (form E92 and E89s) is completed at the same time as the Employer Annual Return (P35 & P14s) to avoid any discrepancies. The holiday scheme ends on 5 September 2013 and employer NICs due on earnings paid after this date cannot be withheld, no matter when a business started trading. An insert is being enclosed with every return to highlight the importance of this date.
National Insurance - General
NEW NATIONAL INSURANCE RULES FOR FLIGHT AND CABIN CREW
25 June 2012
CIPP Policy News Journal
12/04/2013, Page 132 of 362
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