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£50,000 start up tax holiday is perfect tonic

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Manchester accountants Jack Ross say Government plans to make new start up firms in the regions exempt from National Insurance will be a real shot in the arm for the jobs market in the North West.

Under plans announced by the chancellor George Obsborne in the emergency budget people setting up new businesses outside London, the South East and the east of England will be exempt from up to £5,000 of National Insurance payments for each of the first 10 workers and Jack Ross senior partner Peter Black says the move will provide a perfect tonic for start up firms.

“It’s excellent policy because it takes away one of the major barriers to growth for the vast majority of the start-up businesses that we advise,” says Mr Black.

Under the measures firms will be able to apply for the tax cut at any time over the next three years, up to a maximum of £5,000 per employee in the first 12 months of employment.

“We often see that the cost of taking on staff holds young firms back from making the sort of progress they might have otherwise. Big NI costs are a barrier and prevent business owners from fulfilling the potential of their firms — this break will give them the opportunity they need to grow.

“There’s no doubt that this National Insurance holiday is a well thought out move. The cost of employing someone — at 13.8% from April 2011 — is not cheap and this move makes it that little bit easier. As young firms grow the whole economy will benefit.”

Anyone who has started a new business since 22nd June 2010 may benefit from this proposal.

Jack Ross Chartered Accountants, which was founded more than 60 years ago, is based at Barnfield House, The Approach, Blackfriars Road, Manchester and has offices in Futures Park in Bacup.