National Insurance

The secondary threshold, which is the point at which employers start to pay class 1 National Insurance Contributions, is to be increased by an extra £21 per week above indexation from April 2011.

A National Insurance Contributions (NIC) scheme is announced for new businesses which start up in certain areas of the UK over the next three years. This scheme will exempt new businesses in targeted regions from up to £5,000 of class 1 employer NICs due in the first 12 months of employment. This will apply for each of their first 10 employees hired in their first year of business. The Government aim to have the scheme up and running by September 2010.