Financial Jargon Buster - N
- National Insurance
- A form of taxation which you pay as you
earn, used to fund certain state benefits.
- 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 flat rate.
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.
- Net
- 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.
- New-for-old
- 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.
- Non-Cancellable
- 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.
- Non-contributory
- 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 purpose.
- 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.
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