NIM01205 | Class 1 structural overview from April 2009: the Upper Accrual Point (UAP)

Section 22 of the Social Security Contributions and Benefits Act 1992 (SSCBA 1992)

In place from 6 April 2009 the Upper Accrual Point (UAP) is a new threshold (see NIM01202) for the calculation of both State Second Pension and contracted-out NICs rebates. Anyone who is contracted out of the State Second pension only receives a NIC rebate on earnings between the LEL and the UAP.

For guidance on how to calculate the UAP for pay intervals of other than one week from 6 April 2009, see NIM01206.

For State Second Pension and rebate calculations only, it replaces the Upper Earnings Limit.

Contracting out was abolished from 5 April 2016 and this page no longer applies to tax years from this date, see NIM01209.