This special scheme is aimed at helping new businesses in targeted areas of the UK that need it most. During a three year qualifying period, new businesses which start up in these areas will get a substantial reduction in their employer NICs.

Within the qualifying period, the employer will not have to pay the first £5,000 of Class 1 employer NICs due in the first twelve months of employment. This will apply for each of the first 10 employees hired in the first year of business and will operate in selected countries and regions. It is worth a maximum of £50,000 for each business.
Subject to meeting the necessary legal requirements, the scheme is intended to start no later than September 2010. Any new business set up from 22 June which meets the criteria will benefit from the scheme.

The countries and regions which will benefit are based on where the proportion of jobs in the public sector is higher than in London, South East and East. They are therefore as follows:

• Scotland
• Wales
• Northern Ireland
• North East
• Yorkshire and the Humber
• North West
• East Midlands
• West Midlands
• South West

A Q&A paper was issued on 22 June, and further scheme details are expected soon. We will be pleased advise on the opportunities available to those of you looking at starting up a new business.