HMRC internal manual

Debt Management and Banking Manual

DMBM525030 - Debt and return pursuit: NIC: general: Section 8 ToFA1999

Section 8 Decisions

Section 8 (1)(c)of the Social Security Contributions (Transfer of Functions etc.) Act 1999 (ToFA) allows an officer of HM Revenue & Customs to make a decision that an employer or individual is liable to pay a National Insurance liability. An Inspector, Employer Compliance officer or a responsible officer in NICO will usually make the decision. A decision may be made for any Class of NICs, although in practice the majority will be issued to employers to confirm their liability to pay Class 1.

The decision confers a right of appeal to the Tax Appeal Tribunal, and the debtor has 30 days to submit an appeal. Appeals against tax and NICs will be heard at the same time wherever possible. Compliance cases can often take a long time to resolve and the NICs (and any interest) are subject to limitation, even if the NICs are under appeal. Therefore, HMRC must take steps to protect its right to recover any NICs debt the Tribunal determine to be due.

Section 8 decisions can also apply to individual employees where a decision is made that the employee rather than the employer be held liable to pay the NIC’s.