National Insurance

Social insurance program in Britain; based on contributions from employers and employees; provides payments to unemployed and sick and retired people as well as medical services.

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 after all expenses and taxes have been deducted. Net income, the most frequently viewed figure in a firm’s financial statements, is used in calculating various profitability and stock performance measures including price-earnings ratio, return on equity, earnings per share, and many others.

Net Relevant Earnings

Income which can be used to assess the maximum contribution that can be made to a Personal Pension. Includes income which is subject to UK tax under the following headings: Employed Income, (Tax Schedule E), including profit-related pay and taxable benefits. (Not including proceeds from the buying or selling of shares, the right to buy shares, or ‘golden handshakes’). Income from property which forms part of the income of an office or employment. Self-Employed Income, (Tax Schedule D), after deduction of expenses purely relating to that business. Income from Patent Rights which can be treated as Earned Income.

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-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.