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New Employer National Insurance Holiday Scheme

In the 2015 Budget, the Treasury Minister announced the introduction of a new scheme to encourage employers to recruit individuals who have been in receipt of Jobseeker's Allowance or Incapacity Benefit (qualifying benefits) for at least six months as well as individuals who have been in custody (as defined in the Custody Act 1995) for a minimum of 30 continuous days. The Employer National Insurance Holiday Scheme will begin on 6 April 2015 and end on 5 April 2017. During that period, an employer will not be required to pay the secondary Class 1 National Insurance Contributions ("NICs") due for any newly recruited employees who qualify under the scheme (where the Income Tax Division has granted a Certificate of Exemption).

This new scheme replaces the previous National Insurance Holiday Scheme which ceases to operate from 5 April 2015. Employers who have taken on employees under the old scheme are reminded that they must pay employer NIC for those employees from 6 April 2015.

The following Practice Note provide information regarding the scheme and its extension:

PN 188/15 New Employer National Insurance Holiday Scheme

The employer must complete application form R239(NI) and send it to the Assessor of Income Tax within 30 days of the new employee starting work. 

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