It is possible, in certain situations, not to pay NI and still earn benefits. In the outline of the NI system in other divisions, it was noted that earning an amount above the lower earnings limit (LEL) may have earned a contracting out rebate up to April 2016, even though NIC liability does not start until earnings reach the earnings threshold. This is a hangover from the days when tax and NIC were wholly unrelated and the differences between the rules for the two systems were a thorn in the side of employers. NIC liability used to start as soon as earnings reached the LEL, but that was always less than the single personal allowance for income
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