New businessses setting up within the agricultural, fishing and coal sectors will not be able to claim the tax break, worth up to £5,000 per employee or each of the first 10 staff hired in a new venture’s first year.
HM Revenue & Customs said the list of exempted sectors could increase, but most new trading and non-trading businesses would be eligible as long as they are based outside Greater London, the South East and the Eastern regions of the UK as stipulated by George Osborne in his June emergency Budget.
HMRC said businesses would need to claim the tax break, which is available on the first ten qualifying employees that a new business employs in its first year of business. Businesses that have set up since June 22 will be able to claim for the scheme for 12 months from September 6 and until it ends on 5 September 2013.
Naomi Smith, tax manager at accountants Grant Thornton, said: “If you are going to start up a new business you will probably start one anyway, it just makes it a bit easier as your costs have been brought down in the first year.”
