Mediaboss Marketing

07 March 2012

The Isle of Man's Economic Development Minister John Shimmin has highlighted the recent tax relief measure introduced to stimulate economic and employment growth on the island which will provide National Insurance Contribution exemptions for new hires.

From April 6, 2012, an employer will be able to apply to the Assessor of Income Tax for exemption from having to pay the secondary National Insurance Contributions where certain conditions are met, namely: the employment must be of an employee that has not been connected to the entity in the last two years; employment must last at least twelve months and be for at least 30 hours a week; and staffing levels must exceed that in the previous year. Employers must also be up to date in terms of payment of Income Tax Instalment Payments and National Insurance Contributions. The scheme is to run for a period of two years.

Welcoming the boost the measure will give to the island's economy, Shimmin said: "The Treasury are to be applauded for introducing this scheme. I believe it will boost the islands competitiveness as a location for business and is another tool we can use to encourage economic growth."

He added: "Coupled with the existing support the Department offers to businesses, such as the Financial Assistance Scheme, the new National Insurance initiative can help achieve the main priorities that I have outlined for the Department, namely: supporting existing businesses in the island to ensure their continued presence and development; encouraging new businesses to establish in the Isle of Man; identifying and pursuing the development of new business sectors; and promoting the Isle of Man as a world class international business centre."

Chief Executive of the Isle of Man Chamber of Commerce, Mike Hennessy, added: "[The] Chamber has supported this type of initiative in prior discussions with Treasury and as such welcomes the move. Every economy around the world has its challenges presently and any move to encourage job creation aligned with ongoing economic prosperity will be well received on the island."

See original here:
IoM Employment Tax Holiday Begins From April