Dictionary of Financial Terms -
- National Insurance
- A form of taxation which you pay as you earn, used to fund certain
- National Insurance Contributions
- An additional form of "tax" paid by most employers, employees and
self-employed people. The money collected is (broadly) used to pay for social security benefits.
Class 1 Contributions are paid by employers and by employees with
earnings above the lower limit.
Class 2 Contributions are paid by the self-employed at a weekly
Class 3 Contributions are voluntary and are paid by those who do
not earn enough to require Class 1 or Class 2 contributions to be made.
Class 4 Contributions are paid by the self-employed.
- National Savings
- The Department of National Savings is part of the Treasury and
sells investment, savings and deposit products to raise extra finance for the government. The products are designed as
medium to long-term vehicles and are sold "over the counter" at post offices.
- Interest received from a bank or building society account after
basic rate tax has been deducted. If you're a higher rate taxpayer, you will have to pay more tax.
- Net Income
- Income distributions are paid with a 20% tax credit. If you are
liable to lower rate or basic rate income tax, you will have no further liability to tax. If you are a higher-rate
taxpayer, you will have an additional income tax liability. If you are a non-taxpayer, you may be able to use the tax
voucher supplied at the time of the distribution to support a tax repayment claim. Wherever you see a gross
income figure quoted, it means that no tax has been deducted (e.g. as with a PEP investment).
- Net Relevant Earnings
- A definition of 'pensionable income' used in determining the
maximum contributions to a retirement annuity or personal pension scheme that qualify for tax relief.
- Insurance cover for property or equipment where an item lost or
destroyed is replaced by the equivalent new item without deduction for age or wear and tear of the old item and
regardless of price inflation.
- No Extended Tie In
- This means that at the end of your fixed, capped or discounted rate
period, you will not have to pay an early redemption charge if you pay off your mortgage early.
- A contract that the insured has the right to continue in force so
longs as premiums are paid. The insurer cannot make changes to or revoke the insurance during this time.
- A term applied to employee benefit plans or insurance schemes when
the employer pays the full cost and the employee is not asked to contribute.
- Non-profit - Nonprofit
- (Also Not for profit and sometimes Charitable). A term describing
the Inland Revenue (in Britain) and the Internal Revenue Service (in the US) designations of an organisation whose
income is not used for the benefit or private gain of stockholders, directors, or any other persons with an interest in
the company. A nonprofit organisation's income must be used solely to support its operations and stated
- Normal Retirement Age
- The age at which an employee holding a particular position normally
retires from service.
- Normal Retirement Date
- The normal date of retirement applicable to a member of an
occupational pension scheme and specified in the rules of the scheme.
© APT Finance. All Rights Reserved
| Legal Disclaimer |