Net relevant earnings meaning

Practice Note This Practice Note is by Anne Redston, Barrister. The views expressed are her own; she is not authorised to represent the Tribunals Service or judiciary. This Practice Note highlights the principal distinctions between employment and self-employment. It reviews the timing of payment for income tax, National Insurance contributions (NICs), expenses, statutory payments, leave entitlements and, briefly, employment rights. It does not address those operating through agencies (for which, see Practice Notes: Onshore employment intermediaries—income tax provisions, Onshore employment intermediaries—key practical considerations and Offshore employment intermediaries—income tax provisions and key practical considerations). From an individual’s standpoint, employment status is significant, as it determines the income tax and NICs charged on earnings, together with the statutory rights due to employees. From an engager’s standpoint, incorrect categorisation may result in PAYE and NICs assessments, as well as claims for employment rights and/or statutory payments. Misclassifying employment status can be highly costly. This Practice Note, and the companion Practice Notes on employment status, are merely a summary of the relevant law...

ARCHIVED This archived Practice Note reviews an earlier form of personal pension—the retirement annuity contract—and sets out how it contrasts with today’s personal pension arrangements. For further information on personal pension schemes, see Types of personal pension schemes—overview. Personal pension schemes—central role in private pensions sector Personal pensions, in their different guises, occupy a central place in the UK private pensions landscape today. Launched on 1 July 1988, they provide notable flexibility, being open to: employees (with employers allowed to pay in and obtain the tax relief without a tax charge arising for the employee) the self-employed (and, to a degree, individuals with no earnings) Retirement Annuity Contracts—background and aims However, personal pension schemes were preceded by another type—the Retirement Annuity Contract (RAC). Since the introduction of personal pensions on 1 July 1988, no fresh RACs can be established, but RACs set up before that date may continue and can still accept contributions. RACs were first created by the...

The Share Incentives glossary This glossary gathers essential definitions for share incentives terminology and points to relevant resources. It is updated on an ongoing basis as we identify additional terms for inclusion, and currently covers the following: Accelerated vesting – Permits an employee to bring forward the standard vesting timetable under which they obtain access to share awards and/or shares. This commonly (though not always, and not exclusively) occurs on an ‘exit’ event. AIM – A securities market set up and operated by London Stock Exchange plc, launched on 19 June 1995. It enables smaller and medium-sized growth companies to float shares with lighter admission requirements and continuing obligations than the main regulated markets. Previously the Alternative Investment Market, it is now referred to simply as AIM. For further information on share scheme requirements and matters affecting an AIM-traded company, see Practice Notes: Share scheme issues for an AIM company and Continuing obligations of an AIM company. Annual general meeting (AGM) – A general...