NIM07070 - Class 1 NICs: Payments made under employment legislation: Re-allocating primary NICs paid on a payment made under a reinstatement order, a re-engagement order, an order for the continuation of a contract of employment or a protective award:
How to apportion the amount of NICs paid between tax years: Information required
As explained in NIM07066, an employee who has paid NICs on a payment made under:
- a re-instatement order (see NIM07020 – NIM07021);
- a re-engagement order (see NIM07030 – NIM07031);
- an order for the continuation of a contract of employment (see NIM07040 onwards);
- a protective award (see NIM07050 onwards)
may request that those NICs are treated as paid in an earlier tax year to the one in which the NICs were actually paid if this will protect or enhance their benefit/pension position for the earlier year.
In order to apportion the amount of primary NICs paid, you will need the following information:
- the total amount of primary NICs paid in the relevant tax years on earnings paid by the employer who made the payment
- the amount of the payment
- the period to which payment relates
- the relevant earnings limits and, if appropriate, earnings threshold. The example in NIM07071 gives guidance on how to calculate these limits and thresholds.