NI contribution, LEL and salary date

k6chris

I understand that to accrue a year of SP entitlement I need to have been paid (and therefor pay NI on), £5,876 in a given tax year. (£5,876 being the equivalent of 52 weeks x Lower Earnings Limit of £113). Is this calculated on when the salary is earned or when it is paid? For example, if I was paid one month in arrears on the 6th April, does that full month count for the new tax year (when the salary was paid) or the previous tax year (when the work was done)? I assume it's based on payment date but want to double check.

Thanks.

molerat

It is the year in which it is paid that counts.

k6chris

Thanks Molerat. One other question, is the value that counts towards a qualifying year, based on take home pay (ie net of any AVCs you are paying) or gross pay??

Thanks again!

drumtochty

It is the gross pay that it is calculated on and you do not pay NI contributions until you earn a gross pay of over £8,000 pa or there bouts