For an employee who doesn’t earn much more than the Threshold

This rebate is applied to the NIable salary between the LEL and the Threshold. For an employee who doesn’t earn much more than the Threshold, it is possible that the rebate will entirely cancel out the contributions they owe, so that their net NIC is zero. In this case, if the EEs rebate exceeded the EEs contribution it cancelled, the remainder (only a few pence) is paid to the employer (in addition to their own ERs rebate) for general offset against their total NI bill..

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