Security changes for new businesses from Jan 2012

New changes to Social Security rules in January 2012 will allow owners of new businesses to pay lower Social Security contributions for the first 2 years of trading.

Social Security rules are changing in January 2012 allowing owners of new businesses to pay a lower contribution rate for the first 2 full calender years of trading. Assessment of earnings in the early years of a new business will no longer be based on the business owner's previous earnings as an employee. From January, the newly self-employed will instead pay one third of the rate set for the 2012 Standard Earnings Limit of £472.25. This means new business owners will pay £157.42 per month. Once tax assessments are available for the first year of trading, contribution levels will be re-calculated.

For more information on the changes please call Jersey Business Venture on 619222 or Social Security on 447343.