Tax Glossary
Welcome to the our Tax Glossary. To help you interpret the jargon that you can come across in dealing with your tax, our team of experts have written a brief explanation for hundreds of technical terms. Click on a letter to show entries.
National Insurance - Class 1
Employees and their employers pay Class 1 contributions. The contributions are based on a percentage of earnings. Payments made by employees are 'Primary' contributions and those by employers are 'Secondary' contributions. Primary contributions are not payable if under 16 years and over pension age.
Employees and their employers pay Class 1 contributions. The contributions are based on a percentage of earnings. Payments made by employees are 'Primary' contributions and those by employers are 'Secondary' contributions. Primary contributions are not payable if under 16 years and over pension age.
National Insurance - Class 1A
These contributions are paid annually by employers on taxable benefits provided to employees that are not chargeable to Class 1 or Class 1B.
These contributions are paid annually by employers on taxable benefits provided to employees that are not chargeable to Class 1 or Class 1B.
National Insurance - Class 1B
These are payable by employers who enter into a PAYE Settlement Agreement with the Inland Revenue
These are payable by employers who enter into a PAYE Settlement Agreement with the Inland Revenue
National Insurance - Class 2
This is paid by individuals who are self employed and is a fixed amount of £2.30 pw paid direct to the National Insurance Contributions Office. There is a small earnings exception where if profits are below £5075 per annum (2009/10 & 2010/11) an individual is excepted from making payments. These are not payable if under 16 years or over pension age at the beginning of the tax year.
This is paid by individuals who are self employed and is a fixed amount of £2.30 pw paid direct to the National Insurance Contributions Office. There is a small earnings exception where if profits are below £5075 per annum (2009/10 & 2010/11) an individual is excepted from making payments. These are not payable if under 16 years or over pension age at the beginning of the tax year.
National Insurance - Class 3
These are voluntary contributions and are paid by those who would otherwise not pay enough contributions to earn a full pension.
These are voluntary contributions and are paid by those who would otherwise not pay enough contributions to earn a full pension.
National Insurance - Class 4
These are paid by an individual who is self employed and are based on a percentage of profits above the lower limit which is currently equal to the personal allowance. These are payable to H M Revenue & Customs under self assessment. These are not payable if under 16 years or over pension age at the beginning of the tax year.
These are paid by an individual who is self employed and are based on a percentage of profits above the lower limit which is currently equal to the personal allowance. These are payable to H M Revenue & Customs under self assessment. These are not payable if under 16 years or over pension age at the beginning of the tax year.
Net Relevant Earnings
Net Relevant Earnings (or NRE) are the total taxable earnings from all sources, including self employed income, but excluding any income from a job which has a company pension scheme.
NRE is used when calculating the maximum that can be paid into a personal pension scheme. These are limited to a certain percentage of your net relevant earnings.
Net Relevant Earnings (or NRE) are the total taxable earnings from all sources, including self employed income, but excluding any income from a job which has a company pension scheme.
NRE is used when calculating the maximum that can be paid into a personal pension scheme. These are limited to a certain percentage of your net relevant earnings.
Net rents
Gross rents received less payments for charges and services that would normally be borne by the tenant, but are, in fact, borne by you (for example, council tax, water and sewerage rates etc).
Gross rents received less payments for charges and services that would normally be borne by the tenant, but are, in fact, borne by you (for example, council tax, water and sewerage rates etc).
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