NIM01012 - Class 1 structural overview: earnings limits/thresholds and NICs rebate: 2000 to 2001 tax year
Earnings limits/thresholds
For the 2000 to 2001 tax year, there was a Lower Earnings Limit (바카라 사이트˜LEL바카라 사이트™, see NIM01005), a Primary Threshold (바카라 사이트˜PT바카라 사이트™, see NIM01008, sometimes known as the Employee바카라 사이트™s Earnings Threshold or 바카라 사이트˜EE/ET바카라 사이트™), and a Secondary Threshold (바카라 사이트˜ST바카라 사이트™, see NIM01008, sometimes known as the Employer바카라 사이트™s Earnings Threshold or 바카라 사이트˜ER/ET바카라 사이트™). No NICs were paid on earnings between the LEL and the Primary/Secondary Thresholds, with employees and employers only becoming liable to pay NICs once the employee바카라 사이트™s earnings had exceeded their respective threshold limit (see also NIM01007 covering 바카라 사이트˜Notional primary바카라 사이트™). There was also an Upper Earnings Limit (바카라 사이트˜UEL바카라 사이트™) which was the maximum amount of earnings upon which primary Class 1 NICs were payable (see NIM01009). For further guidance on calculating and recording NICs, including NICs rates, see NIM11000 onwards. If aggregation of earnings is involved (NIM01004), see also NIM10000 onwards.
NICs rebate
Where employers operate contracted-out pension schemes, they and their employees who are members of the schemes receive a reduction in their NICs. The reduction, for both employees and employers, is realised via a reduction in the NICs percentage rate applied to earnings between the LEL and the UEL. The percentage rate differs for employees and employers, and for the different types of contracted-out schemes. The difference between the full contracted-out rate and this reduced rate is known as the 바카라 사이트˜NICs rebate바카라 사이트™.
For further information about contracting-out, see NIM01017. For further guidance on calculating and recording the NICs rebate, including rebated rates, see NIM11000 onwards. If aggregation of earnings is involved (NIM01004), see also NIM10000 onwards.