NIM01013 - Class 1 Structural Overview: Earnings limits/threshold and NICs rebate: 1999 to 2000 tax year
Earnings limits/threshold
April 1999 saw the abolition of NICs for employees on earnings up to and including the Lower Earnings Limit (바카라 사이트˜LEL바카라 사이트™, see NIM01005), the abolition of NICs for employers up to and including a new Secondary Threshold (바카라 사이트˜ST바카라 사이트™, see NIM01008, also known as the바카라 사이트˜Employer바카라 사이트™s Earnings Threshold바카라 사이트™ or 바카라 사이트˜ER/ET바카라 사이트™), and the introduction of one single rate for employers, to replace the four separate ones previously in operation (see NIM01006 covering Earnings Brackets). 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.