An employer qualifies for SER if they paid or were liable to pay Class 1 NICs to HMRC (Account Office) of a fixed amount (or less) in the qualifying tax year.
From April 2002, a small employer for this purpose is defined as 'An employer who pays (or is liable to pay) total gross Class 1 NICs (excluding Class 1A and Class 1B) of £40,000 or less in the qualifying year'.
From April 2004 onwards, the total gross Class 1 NICs for a small employer to qualify for SER was increased to £45,000.
The qualifying tax year is the last complete tax year before the start of the employee's Qualifying Week(QW).
The QW for Linda’s baby is Sunday 2/01/11 to Saturday 8/01/11, which falls in the 2010-11 tax year. The qualifying tax year for SER is therefore 2009-2010.
To calculate whether the total Class 1 NICs paid or payable is £45,000 or less