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HMRC internal manual

Compliance Operational Guidance

Supporting Guidance: employer compliance: guidance by subject: settlement: posting (allocating) contributions to an employee’s NI account - process to follow

NIRS Calculation Support

The NICs calculation tool is called NIRS2 Calc Support and is accessed via My Services - Receivables. All NICs calculations should be made using NIRS2 Calc Support.

There are a number of benefits from using NIRS2 Calculation Support:

  • information already held on NPS can be included in the calculation
  • the calculation of NICs is accurate
  • the system produces a breakdown of the calculation taking account of what has already been paid
  • the system clearly shows whether arrears are due or whether there has been an overpayment
  • the calculation can be printed out
  • the printout provides information in a format that allows NPS to be accurately updated with the correct information
  • a nationally consistent process is used

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Calculating NICs Due

In normal circumstances the steps to be followed are set out in the following attachments. These calculations should be completed prior to the issue of computations to the employer or their accountant.

  • Steps to follow where the employee is a director of the company (COG908103).
  • Steps to follow where the employee is not a director of the company (COG908104).
  • Procedure to be used when a NPS account cannot be traced (COG908105).

There may be circumstances when it is not possible to accurately determine precise earnings. In such circumstances you should proceed in accordance with COG908091 onwards.

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Sending Details of NICs Postings to NIC&EO

At the conclusion of the case

  • a copy of the NIRS2 Calc Support printout should be sent to NIC&EO with the ECR304 and should include a note to confirm whether the contributions are

  • a further copy of the NIRS Calc Support calculation should be retained in Caseflow.

Where the only arrears due are secondary NICs there is no need to send details to NIC&EO as they are not used to calculate entitlement to contribution based benefits.

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NIC&EO Action

Using the information from the NIRS Calc Support printouts NIC&EO will access the relevant NPS account and amend the details in the contribution folder.