NIM10012 - Aggregation of Earnings: Calculating NICs: Earnings Periods: General
Regulation 6 of the Social Security Contributions Regulations 2001 (SSCR 2001) (SI 2001 No 1004)
Up to 5 April 2016 (ending of contracting out)
The earnings period over which NICs are calculated is dependent on the type of NICs payable for each employment. Regulation 6 of the SSCR 2001 provided for the earnings period to be adopted in given circumstances. Prior to the ending of contracting out the earnings period to use depended on whether:
- all employments were contracted out or
- there was a mixture of contracted out and non contracted out employments
- none of the employments were contracted out
Where at least one of the employments was contracted out it is important to ascertain whether, before 6 April 2012, the earner held an Appropriate Personal Pension (APP). The correct earnings period to use is dependent on all of these factors.
From 6 April 2016
After 6 April 2016, regulation 6 SSCR 2001 was amended by regulation 9 of the Social Security (Contributions) (Amendment) (No 2) Regulations 2016 (2016/352).
As contracted out employments no longer exist, the earnings period to use is the shorter (or shortest) of the earnings periods in respect of earnings derived from the employments.