1.1.N.75 Nil paid recipients, zero paid recipients (JSP, YA)
Definition: nil paid & zero paid
Nil rate (and zero rate) are terms used to describe recipients who are current and are paid a nil rate because they:
- are qualified for an employment income nil rate period because of ordinary income (either their own or their partner's), part of which is employment income (1.1.E.102), which makes their social security pension or benefit not payable
- are serving an IMP (from 20 September 1997) (see explanation), or
- have a direct (compensation) adjustment.
Explanation: In these circumstances, IMP recipients are those whose payment is reduced to:
- a part-rate, because of the IMP, AND THEN
- a nil rate, because of income.
Excluded nil paid recipients
Recipients EXCLUDED from the definition of nil paid are those whose nil payment is due to:
- a compliance penalty
- a non-payment period
- a payment deduction resulting from
- an advance payment
- tax, OR
- an overpayment or debt
- a housing authority payment
- a waiting period (see example), OR
- an IMP, where the rate of the IMP reduces the payment to nil.
Example: A liquid assets waiting period.