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Get to the point!

24 February 2009 / Peter Arrowsmith
Issue: 4195 / Categories: Comment & Analysis , Income Tax
PETER ARROWSMITH considers the effects of a forthcoming new National Insurance limit. Practitioners may need to explain this to clients and their employees


  • The new upper accrual point.
  • The effect of the limit on contributions from April 2009.
  • Examples for contracted out and not contracted out contributions.
  • Changes to forms P14 and P60.
  • The long term effect of the changes and the need for advisers to be prepared for questions.

The ‘point’ referred to in the headline is the ‘upper accrual point’ (UAP) which will come into effect on 6 April 2009. It is a new limit of £770 per week fixed by the National Insurance Contributions Act 2008 s 3.

Provision for equivalent amounts of £3 337 per month and £40 040 per annum and formulae for other earnings periods are set out in the Social Security (Contributions) (Amendment) Regulations 2009 (SI 2009 No 111) Reg 3(5).

The UAP...

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