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HMRC internal manual

Compliance Operational Guidance

From
HM Revenue & Customs
Updated
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Alternative rights of recovery (PAYE directions): primary class 1 NICs: Employment Status & Intermediaries (ES&I) processes: completing the section 8 report form – ‘decision made’

You will need information from the individual’s NIRS2 record to enable you to complete this form.

To notify NIC&EO that a decision has been made and to request that they update the individual’s record accordingly, you should complete the Section 8 report form to include

  • your details, including
    • name
    • office details (including the Employment Status & Intermediaries (ES&I) case reference)
    • telephone number
  • designatory information for the individual
    • name
    • National Insurance Number
    • employer name (to whom the under-deduction relates)
    • employer reference – including the office numeral
    • Accounts Office reference
    • SAFE customer reference. Where more than one year was included in the decision then there must be a separate reference number for each year
  • relevant details on part 1 of the form including
    • minus postings (COG932480 refers). Where you have identified that the NICs credited to an individual’s NIRS2 account were not paid a ‘minus posting’ is required. To allow NIC&EO to do this you must check the ‘minus postings’ box and complete the table. The entries made for each year must reflect those stated in the ‘Tax Year contributions’ folder on the NIRS2 record – with the exception of the ‘Archive No.’ which can be found in the Class 1 Contributions folder
    • the Primary Contribution box should only show the amount of any credit to be removed
    • check the additional information box
    • Decision type: enter ‘Negligent Director’ (If the individual was not a director enter ‘Liability for NICs Class 1’.)
    • Decision status: enter ‘Decision Made’
    • Start date: enter the date (DD/MM/YYYY) when the decision made first took effect on the Contributor’s NIRS2 account. This should normally be the beginning of the relevant tax year but may be different in cases where the employment commenced during the year
    • End date: this will be the date when the decision made last took effect on the Contributor’s NIRS2 account. This should be the last day of latest tax year included in the decision
    • Negligent employee: this box must be checked unless you are reporting a successful appeal or erroneous decision.