NIM01008 – Class 1 Structural Overview: The Primary Threshold (‘PT’) & the Secondary Threshold (‘ST’)

Section 5, SSCBA 1992 and regulations 10 & 11

The Primary Threshold (‘PT’) and Secondary Threshold (‘ST’) represent the points from which payment of NICs arises – as opposed to the point at which entitlement to benefit builds up and which is set by the LEL ( NIM01005). The PT and ST are currently (2001/2002) aligned with the Income Tax personal allowance. The PT and ST are set at the same level for both employees’ and employers’ NICs (see NIM01011). The monthly and yearly PT and ST are fixed each year. For guidance on how to calculate the PT and the ST for pay intervals of other than one month or one year, see NIM01010.

For further guidance on NIC thresholds, see NIM11000 onwards. If aggregation of earnings is involved ( NIM01004), see also NIM10000 onwards.