National Insurance - Difference between Lower Earnings Limit and Primary Threshold

Namesake

Namesake

Namesake

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19 Aug 2011
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What is the difference between these?

Am I right in thinking neither the employer or employee pay NI under the Primary Threshold? So what the hell is the Lower Earnings Limit?
 
Tax Bank

In a nutshell:

Earnings above the Lower limit entitle you to benefits as if you had paid NIC (i.e. state pension where you have to have contributed for 30ish years).

Primary threshold is where you actually pay the NIC.
 
Pudney said:
Tax Bank

In a nutshell:

Earnings above the Lower limit entitle you to benefits as if you had paid NIC (i.e. state pension where you have to have contributed for 30ish years).

Primary threshold is where you actually pay the NIC.
Click to expand...

Is that the distinction? So you get the "stamp" for earnings above LEL but don't actually pay?

I never knew that.
 
Vonhelmet said:
Is that the distinction? So you get the "stamp" for earnings above LEL but don't actually pay?

I never knew that.
Click to expand...

Same. I made the assumption you had to be paying contributions. I should have learnt by now never to assume with tax :p
 
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