Nic Rebates
First £120.00 (LEL)
Nil
Nil
Nil
Nil
Nil
Nil
6th April 2021 COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS £120.01 to £170.00 0% 0% 0% 0% 0% 0% £170.01 - £967.00 13.8% 0% 0% 13.8% 13.8% 13.8% Over £967 (UEL/ UST/ AUST) 13.8% 13.8% 13.8% 13.8% 13.8% 13.8% Contracted-out employment rebates 2005 - 2016 Employee Employer COMPS COSRS 6th April 2005 to 5th April 2006 1.6 % 1.0 % 3.5 % 6th April 2007 to 5th April 2012 1.6 % 1.4 % 3.7 %
6th April 2012 – 5th April 2016
1.4% (COSR)
Nil
3.4%
6th April 2016 onwards
Nil
Nil
Nil
NIC REBATES As a result of the rebates above a negative or minus employer’s rate was created on earnings between the Lower Earnings Limit (LEL) and the Earnings Threshold (ET). In cases where an employee’s rebate exceeds the contribution due, the balance remaining was available to offset against the employer’s wider NICs liability. From 6th April 2003 NICs rebates have been offset against NICs due on forms P11 and P14. The NICs rebate is no longer shown separately on statutory forms and need not be shown on payslips as it was previously. It is now the net NICs contributions after deduction of rebate that is shown. No printing, copying or reproduction permitted. For employees earning above the Earnings Threshold (ET) this can result in a negative NICs contribution that is shown with a letter ‘R’ on all returns. From 6th April 2009 rebates apply only to earnings between the Lower Earnings limit (LEL) and the Upper Accrual Point (UAP). Previously rebates applied on earnings between the LEL and the Upper Earnings Limit (UEL).
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